Chinese shares higher in morning trade

Chinese share prices were higher in morning trade Tuesday led by oversold lenders after Bank of China posted favourable first-quarter net profits, dealers said.

They said the strong performance in bank stocks following Monday's slump of 2.33 percent lifted market sentiment, as Bank of China jumped three percent on first-quarter net profits that rose 85 percent year-on-year.

However, traders also warned that profit-taking may weigh on the market after the key index posted broad gains last week prompted by a cut in the stamp duty tax for stock trading.

The benchmark Shanghai Composite Index, which covers A and B shares, was up 29.71 points or 0.85 percent to 3,504.43 at 10:06 am (0206 GMT).

The Shanghai A-share index added 31.20 points or 0.86 percent to 3,676.78 points, while the Shenzhen A-share index was 5.36 points or 0.49 percent to 1,101.73.

(Agencies)