SHANGHAI stocks moved back and forth today as investors remain cautious on speculation that the central government may issue tightening measures over the weekend.

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, inched up 0.73 percent, or 38.59 points, to close at 5,312.18.

The Shenzhen Composite Index, which covers the smaller mainland stock market, rose 1.64 percent, or 23.95 points, to 1,482.86.

Air China jumped 10 percent to 23.20 yuan (US$3.09) while Shanghai Airlines also rose 10 percent to 16.83 yuan.

China Southern Airlines rose 10 percent to 25.85 yuan and Hainan Airlines rose 9.96 percent to 11.59 yuan.

Baoshan Iron & Steel Co Ltd, the biggest steel maker in China, jumped 6.39 percent to 19.80 yuan per share and Wuhan Iron & Steel Co, the third-biggest steel producer, jumped 7.30 percent to 20.59 yuan.

Tangshan Iron & Steel Co rose 9.9 percent to 25.98 yuan.

Banks reported widespread declines after China Construction Bank Corp said it will raise as much as 58 billion yuan in the world's second-biggest share sale this year.

Bank of Communications lost 1.38 percent to 13.58 yuan and Industrial Bank Co Ltd lost 3.27 percent to 57.34 yuan.