Chinese shares 0.17 percent higher at midday

Chinese share prices edged 0.17 percent higher by midday Tuesday as profit-taking on some large-cap stocks slowed the market's earlier momentum, dealers said.

Shares opened higher as sentiment improved after the key index rose nearly 4.6 percent in the previous session, but profit-taking in major lenders kept the market from climbing higher, traders said.

Industrial and Commercial Bank of China and China Construction Bank both tumbled on profit taking, although China Minsheng Bank remained strong after projecting first half net profit would rise more than 110 percent year-on-year.

"The market lacks upside momentum," Greatwall Securities' analyst Zhang Yong told Dow Jones Newswires. "Strong earnings forecasts have been priced in, which can't lift stock prices further."

Airliners remained in focus after Air China and China Southern Airlines both announced up to 38 percent rises in fuel surcharges on international tickets.

The benchmark Shanghai Composite Index, which covers both A and B shares, added 4.68 points to end the morning 0.17 percent higher at 2,797.07.

The Shanghai A-share index added 4.92 points, or 0.17 percent, to 2,933.69 points, while the Shenzhen A-share index rose 1.30 points, or 0.15 percent, to 889.00.

(Agencies)