Chinese shares edge up 0.34 percent by midday

Chinese share prices edged up 0.34 percent by midday Monday led by brokerages and green energy developers in a cautious session before the release of key economic data later this week, dealers said.

Demand for stocks in companies developing hydro and solar power was up, traders said, after oil prices rose to 147.27 dollars a barrel in New York before settling at 145.08 dollars.

But analysts said the key index was likely to resume its slide in the next few days as cautious investors await the release of China's June inflation data on Thursday.

Oil majors and airlines were under pressure as rising fuel costs threatened to squeeze their profits. Chinese refiners must sell at government-set prices regardless of whether their costs increase.

"The current rebound will last if oil prices turn lower," Guosen Securities strategist Tang Xiaosheng told Dow Jones Newswires.

"Investors who're betting this will happen soon are now buying brokerages ahead of the wave since the sector benefits most from an upturn in market sentiment."

The benchmark Shanghai Composite Index, which covers both A and B shares, was up 9.83 points to end the morning at 2,866.46.

The Shanghai A-share index added 10.37 points, or 0.35 percent, to 3,006.65 points, while the Shenzhen A-share index rose 6.61 points, or 0.73 percent, to 908.54.

(Agencies)