Fu Chenghao/Shanghai Daily news

Shanghai shares rose yesterday amid optimism that the program to trim state shares is proceeding smoothly after Baoshan Iron & Steel Co's compensation plan was approved by shareholders over the weekend.
The shanghai Composite Index, which tracks the yuan-denominated A shares and foreign-currency B shares, closed 1.63 percent higher at 1,187.01. The A-share Index rose 1.63 percent to 1,247.12 while the B-share Index added 2.03 percent to 68.80.
Holders representing 96.48 percent of Baoshan Steel's tradable stocks voted in favor of the compensation package, which offers small investors 2.2 shares for every 10 held and warrants allowing them to buy one share for every 10 with a lower price.
"Continuous high approval rates have brought confidence back into the market," said Wei Wei, a West China Securities Co analyst.
Besides baoshan Steel, China Yangtze Power Co and Citic Securities Co, the country's biggest publicly traded brokerage, have also had their state share reduction plans approved earlier this month.
China united Telecommunications Corp, which controls the country's No. 2 mobile phone operator, climbed 1.40 percent to close at 2.89 yuan (35 US cents).
Oil refiner China Petroleum & Chemical Corp added 0.67 percent to 4.52 yuan. China's major metal maker Jiangxi Copper Co jumped 2.63 percent to close at 5.08 yuan.