Leo Zhang/Shanghai Daily news

Shanghai shares surged yesterday, with foreign-currency counters nearly topping daily trading limits, on optimism of a capital influx and the proposed conversion of US dollar-backed shares into yuan equities.
The Shanghai Composite Index, which covers yuan-denominated Class A shares and hard-currency Class B stock, jumped 2.06 percent to 1,233.35, the highest close since April 14. The A-share index added 1.98 percent to 1,294.52 and the B-share index soared 9.13 percent to 77.62, the biggest single-session gain since June 24, 2002.
"Investors are now bullish about the funds supply this year," said Lu Chengde, a Guosen Securities Co analyst. "B shares were snapped up as the lower-valued chips may be bought or transferred into A stocks as planned by the authorities."
China's insurers may allocate as much as 150 billion yuan (US$18.6 billion) for investment in the nation's stock markets, up from 84.6 billion yuan last year, the China Securities Journal reported yesterday, citing unnamed market insiders at China Life Insurance Co.
Separately, the Shanghai Stock Exchange may initiate a trial program to allow some of its listed firms to convert B stock into A chips this year, Bloomberg News reported yesterday, citing the bourse's vice president, Zhou Qinye.
An official at the exchange yesterday confirmed Zhou's remarks but declined to provide more information.
Banking counters soared yesterday after Shanghai Pudong Development Bank Co said it posted a 48 percent growth in the fourth quarter last year.
The bank, partly owned by Citigroup Inc, added 6.31 percent to 10.95 yuan after it said profit jumped to 785 million yuan during the period. Revenue rose to 5.8 billion yuan from 4.7 billion yuan a year earlier.