Chinese shares mixed at midday, Shanghai up 0.28%

2008-07-18 05:53:05 GMT       2008-07-18 13:53:05 (Beijing Time)       SINA.com

SHANGHAI, July 18 - Chinese share prices were mixed at midday Friday, with the Shanghai bourse up 0.28 percent in thin trading as oil refiners and airlines benefited from falling oil prices, dealers said.

The benchmark Shanghai Composite Index, which covers both A and B shares, rose 7.47 points to end the morning at 2,692.25.

"Oil price is (being) seized upon as an excuse to buy," Mo Guangliang, an analyst with Orient Securities, told Dow Jones Newswires.

However, the market is waiting to see whether the government will tighten or relax credit conditions after the latest economic data indicated both economic growth and inflation were slowing, he said.

"The truth is investors are nervously eyeing Beijing for clues," Mo said.

China's gross domestic product grew 10.1 percent in the second quarter, down from 10.6 percent in the first quarter.

Consumer price inflation slowed to 7.1 percent in June from a peak of 8.7 percent in February. But it remains well above Beijing's target of 4.8 percent for 2008.

The Shanghai A-share index was up 7.90 points, or 0.28 percent, to 2,823.92 points, while the Shenzhen A-share index lost 4.97 points, or 0.59 percent, to 834.09.

(Agencies)

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