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Oil rates, possible new funds lift shares
8/7/2005 10:04

Leo Zhang/Shanghai Daily news

Shanghai shares rose yesterday for the first day in eight led by oil-related companies after crude prices jumped to a record high in New York.
The rise was also spurred by a news report the government may initially inject capital into five domestic brokerages to bolster the country's capital markets.
"The price surge gave investors a reason to build up positions on oil stocks," said Lu Chengde, a Guosen Securities Co trader. "Investors also expected financial regulators to put in place more market-boosting measures."
The Shanghai Composite Index, which groups yuan-denominated A shares and foreign-currency B shares, edged up 0.49 percent to 1,038.60. The A-share Index added 0.49 percent to 1,090.67 and the B-share Index grew 0.35 percent to 62.71.
Crude oil for August delivery on Wednesday increased 2.8 percent to US$61.28 a barrel on the New York Mercantile Exchange, the highest close since the futures started trading in 1983.
China Petroleum & Chemical Corp, Asia's biggest oil refiner, rallied 2.90 percent to 3.55 yuan (43 US cents).
The People's Bank of China may help China Jianyin Investment Ltd, its investment unit, to infuse funds into "key" brokers in the third quarter to boost their liquidity and strengthen working capital, the Shanghai Securities News reported yesterday, citing unnamed officials at the central bank.