Chinese shares mixed in morning trade, Shanghai up 0.57 pct

Chinese share prices were slightly higher at midday Monday with the Shanghai bourse up 0.57 percent led by oil and power companies, dealers said.

The benchmark Shanghai Composite Index, which covers both A and B shares, gained 19.48 points to 3,452.84.

Initial public offering plans by China State Construction Engineering Corp. and Shaanxi Provincial Natural Gas Company had dampened market sentiment, dealers said.

The plans had raised concerns that market liquidity would tighten as investors sought stakes in the two companies, they said.

But strong performances by oil and power stocks boosted the market amid speculation that the government will relax price controls to help energy suppliers cope with rising prices.

"Although the two companies' initial public offering plans weighed on the market, investors' confidence will be restored as the economic impact of the Sichuan earthquake was expected to be limited," said Hua Xin, an analyst at Founder Securities.

The National Bureau of Statistics said on the weekend that the earthquake would not hurt China's economic fundamentals, as the disaster-hit regions account for a small portion of the country's economy.

The Shanghai A-share index was up 20.39 points or 0.57 percent to 3,623.05 points, but the Shenzhen A-share index shed 2.19 points or 0.20 percent to 1,086.40.

(Agencies)