Fu Chenghao/Shanghai Daily news

News that the State Council has approved a new quota for foreign firms to invest in China's yuan-denominated securities boosted the Shanghai stock market yesterday.
The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, rose 0.27 percent to 1,155.04, ending four consecutive sessions of declines during which the index fell 5.6 percent.
The A-share Index gained 0.27 percent to 1,213.51 while the B-share Index edged up 0.20 percent to 67.09.
The central government has approved a new quota of US$6 billion under the Qualified Foreign Institutional Investor program, according to the State Administration of Foreign Exchange.
China began allowing foreign firms to invest in its yuan-denominated A shares two years ago under the QFII program, pending individual approval and quota. So far 27 firms including Morgan Stanley and UBS AG have used up their first quota of US$4 billion.
"News of fresh money is positive to the sentiment but gains were capped by lingering concerns over the state-share reform," said Wei Wei, a West China Securities Co trader.
The 20 companies, which unveiled their plans yesterday, offered on average  2.854 shares to tradable shareholders for every 10 held as compensation, slightly lower then the market expectation of 3 for every 10.