Chinese shares slightly higher in morning trade

SHANGHAI, April 11, 2008 (AFP) - Chinese share prices were slightly higher Friday as banks continued to drive interest due to strong profit forecasts, dealers said.

They said banks remained in the spotlight after the China Merchants Bank said its first quarter net profit was expected to rise about 140 percent over a year ago.

Meanwhile, investors also found some support as government officials addressed the need to manage the supply of shares hitting the market, a major negative factor that depressed first quarter share prices.

The official Securities Times quoted Li Wei, deputy director of the state administration of state-owned assets, as saying closer supervision is needed when state-owned shares become freely tradable to maintain a stable stock market.

The benchmark Shanghai Composite Index, which covers A and B shares, was up 8.51 points or 0.25 percent to 3480.25 points at 10:18 am (0218 GMT).

The Shanghai A-share rose 8.88 points or 0.24 percent to 3,651.52 points, while the Shenzhen A-share gained 10.51 points or 0.94 percent to 1,130.84.