Chinese shares rise 1.48 percent by midday

SHANGHAI, July 28, 2008 - Chinese share prices rose 1.48 percent by midday Monday after the central bank suggested monetary policy would focus more on maintaining growth than on curbing inflation, dealers said.

The central bank said in a report issued Sunday night that it will "create a good environment for stable, relatively fast growth," while omitting a reference to a tight policy stance it adopted in December.

Traders said the comments eased concerns over further monetary tightening, leading investors to build up positions in oversold banks and real estate stocks.

"Investors have reached the consensus that Beijing will ease its grip on the economic policy, and any easing will help increase liquidity on the stock market," Cao Xuefeng at West China Securities told Dow Jones Newswires.

The benchmark Shanghai Composite Index, which covers both A and B shares, added 42.37 points to finish the morning at 2,907.48.

The Shanghai A-share index was up 44.62 points, or 1.48 percent, at 3,050.20 points, while the Shenzhen A-share index jumped 10.31 points, or 1.14 percent, to 913.26.

(Agencies)