Chinese share prices up 1.37 percent in morning trade

SHANGHAI, Dec 24, 2007 (AFP) - Chinese share prices rose 1.37 percent in Monday morning trade, boosted by consumer and telecom stocks, dealers said.

They said consumer stocks were considered relatively immune from government measures to cool the economy and had been boosted by Beijing's efforts to increase domestic consumption.

The benchmark Shanghai Composite Index, which covers both A and B shares, ended the morning session up 69.87 points at 5,171.65.

"The market was pushed up largely by consumer stocks such as Chinese liquor firms," said Ma Xin, an analyst at Daton Securities.

"Institutional investors kept adjusting their portfolios and are buying blue chips at the current relatively low levels."

China United Telecommunications Corp., the smaller of the country's two handset operators, gained 0.68 yuan or 6.42 percent to 11.28.

The Shanghai Securities News reported Monday that the government planned to split the company as part of a long-awaited restructuring of the telecom industry.

The government suggested that China's fixed-line operators acquire China Unicom's assets, creating two entities with both mobile and fixed-line operations to challenge dominant cellular firm China Mobile.

Large property developers underperformed on fears of further measures by the authorities to cool the sector. The central bank reiterated Friday that it would tighten monetary policy and curb credit growth.

The Shanghai A-share Index added 73.26 points or 1.37 percent to 5,427.02 points. The Shenzhen A-share Index was up 30.31 points or 2.10 percent to 1,476.03.