Fu Chenghao/Shanghai Daily news

A news report saying China may divide firms into five groups with varying minimum percentage of state share holdings sent Shanghai shares higher at the close yesterday.
The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, added 0.55 percent to 1,088.95. The A-share Index gained 0.54 percent to 1,144.83 while the B-share Index rose 1.25 percent to 59.42.
"The rule requiring a minimum state share holding for a certain period helps improve investors' confidence," said Wei Wei, a West China Securities Co analyst. "Investors may feel that disposing a huge amount of state shares may cut prices of existing equities."
Firms related to state security or providing substantial public products will have not less than 60 percent state-owned non-tradable shares while companies in resource exploration or with core technologies should hold at least 51 percent of state shares, the Securities Market Weekly said. Retail firms are expected to hold 10 percent state shares.
The weekly cited an unidentified official at the State-owned Assets Supervision and Administration Commission.
"This is only the initial plan, or guideline," the official was quoted as saying.
The report also disclosed that further discussions were needed about how much state shares should the media and finance firms hold.