Chinese shares rise 0.64 percent in morning trade

Chinese share prices ended Wednesday morning trade 0.64 percent higher led by heavyweight banks after two of the nation's top lenders reported strong 2007 annual results, dealers said.

They said good results from major banks helped ease investor fears as media reports previously forecast the lenders could suffer net losses due to investments in troubled US subprime securities.

Industrial and Commercial Bank of China, the country's largest lender, said its 2007 net profit grew 65.5 percent from the previous year to 81.5 billion yuan (11.6 billion dollars).

Bank of China, another major state-run bank, said its 2007 net profit jumped 31.3 percent, even as it made a 1.3-billion-dollar allowance for its subprime-related securities.

"Gains in banks helped boost the index, after Industrial and Commercial Bank of China and Bank of China announced favorable annual results," said Hu Yu, an analyst at Chinalion Securities.

Hu also noted that blue chips found support as new funds recently approved by the securities regulators were building positions.

The benchmark Shanghai Composite Index, which covers both A and B shares, advanced 23.14 points to 3,652.76.

The Shanghai A-share Index rose 24.31 points or 0.64 percent to 3,832.55. The Shenzhen A-share index was up 13.74 points or 1.14 percent to 1,223.54.

(Agencies)