Chinese shares rise 1.58 percent by midday

Chinese share prices rose 1.58 percent by midday Monday, as bargain hunters bought financial stocks amid expectations of strong half-year earnings, dealers said.

The benchmark Shanghai Composite Index, which covers both A and B shares, rose 43.93 points to finish the morning at 2,822.30.

"We still expect robust earnings for financial companies in the first half, and they will perform if the authorities loosen credit controls," Zhang Gang, an analyst at Central China Securities, told Dow Jones Newswires.

But analysts cautioned the gains might be short-lived because investors remain concerned about the slowing economy and uncertainty over Beijing's monetary policy plans.

CITIC Securities, the top listed brokerage house, gained 3.6 percent to 23.96 yuan after reporting its net profit rose 13.3 percent in the first half of 2008, despite the stock market's slump.

The Shanghai A-share index was up 46.09 points, or 1.58 percent, to 2,960.41 points, while the Shenzhen A-share index gained 16.93 points, or 1.96 percent, to 881.53.

(Agencies)