Fu Chenghao/Shanghai Daily news

Shanghai shares surged yesterday, helped by textile firms which are optimistic over the Sino-US textile negotiations, and locally-based firms which are set to end their state share sales within a year.
The Shanghai Composite Index, which tracks the yuan-denominated A shares and foreign-currency B shares, rose 1.32 percent to 1,192.83 on turnover of 14.75 billion yuan (US$1.82 billion). The A-share Index climbed 1.33 percent to 1,253.37 while the B-share Index edged up 0.19 percent to 68.50.
China and the United States are holding their third round of talks on the textile issue this week.
"As news reports said some European retailers had been complaining that they need more textile imports, investors are showing optimism towards the negotiations," said Gong Wei, a Xiangcai Securities Co analyst. "So, bargain hunters started a rally in the textile sector."
Shanghai Dragon Corp, the city's biggest textile firm, gained 6.64 percent to close at 3.05 yuan. Huafang Textile Co climbed 5.36 percent to 2.75 yuan while Fujian Fengzhu Textile Science & Technology Co surged 4.40 percent to 4.27 yuan.
Shanghai Chlor-Alkali Chemical Co, the nation's major polyvinyl chloride maker, surged by the 10 percent daily trading limit to close at 7.01 yuan. Shanghai Tire & Rubber Co  jumped by the daily cap to close at 8.14 yuan.