Leo Zhang/Shanghai Daily news

Shares in Shanghai rose yesterday after China's securities regulator allowed two new foreign institutions to purchase yuan-denominated equity, fanning optimism of that an influx of overseas funds will rise.
The Shanghai Composite Index, which covers both yuan-denominated A shares and hard-currency B shares, was up 0.26 percent at 1,119.94. The A-share index added 0.26 percent to 1,177.08 and the B-share index grew 0.91 percent to 62.77.
"China has boosted efforts to lure overseas investors to spur the markets," said Lu Chengde, a Guosen Securities trader. "More investment licenses and quotas are expected to be issued to foreigners and more capital inflows are anticipated."
The China Securities Regulatory Commission on Friday granted licenses to investment units of Singapore's Temasek Holdings Pte and American International Assurance to buy stocks and bonds on the main boards of Shanghai and Shenzhen stock exchanges. The two investors still need to get investment quotas from the State Administration of Foreign Exchange.
The move brought the number of overseas investors to 32 under China's Qualified Foreign Institutional Investor program, which offered limited access to local capital markets. So far, 26 financial institutions have been allotted a collective investment limit of US$4.93 billion.
China also approved a combined US$875 million to investors including HSBC Holdings Plc and Fortis Bank.
Jiangsu Hengtong Photoelectric Stock Co, a maker of telecommunications equipment, advanced 1.79 percent to 6.24 yuan (77 US cents).