Chinese shares rise 0.79 percent by midday

SHANGHAI, July 17, 2008 - Chinese share prices gained 0.79 percent by midday Thursday as data on China's economy, lower world oil prices and a rebound on Wall Street combined to boost market sentiment, dealers said.

The benchmark Shanghai Composite Index, which covers both A and B shares, rose 21.38 points to finish the morning at 2,727.25.

Airlines and oil refiners were among the strongest performers.

Banks also regained some lost ground as data showing China's economy was slowing suggested the government was less likely to take heavy-handed steps to tighten credit conditions in the near future, traders said.

China's economic growth slowed to 10.4 percent in the first half and 10.1 percent in the second quarter, down from 11.9 percent for all of 2007, official data showed Thursday.

Wall Street staged a strong rebound on Wednesday, with a sharp drop in oil prices helping to boost sentiment.

"The market will stay in positive territory for a while with all the market-boosting factors," TX Investment trader Wu Feng told Dowjones Newswires.

The Shanghai A-share index was up 22.53 points, or 0.79 percent, to 2,860.63 points, while the Shenzhen A-share index gained 5.41 points, or 0.64 percent, to 852.58.

(Agencies)