Shanghai's key stock index gained today after the China Securities Journal reported that regulators may slow approvals for stock sales to ensure "stable and healthy'' markets.

The Shanghai Composite Index advanced 2.99 percent, or 83.05 points, to 2,861.42 at 3pm.

In Shanghai, 820 shares rose while 33 stocks remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, gained 3.41 percent, or 28.09 points, to 852.77.

Stock holdings of mutual funds have declined this year because share valuations are falling, China Securities Journal reported on Saturday, citing an official at the regulator it did not identify.

Shanghai-based Shimao Property Co surged 5.61 percent to 12.05 yuan (US$1.77) while China Vanke, the country's biggest developer, jumped 3.82 percent to 8.96 yuan.

Lujiazui Finance & Trade Zone Development Co increased the daily cap of 10 percent to 17.51 yuan while Guangdong-based China Lvgem Co also gained the 10 percent cap to 7.04 yuan.

Housing prices in 70 major Chinese cities added 9.2 percent in the second quarter from a year ago, the National Development and Reform Commission said on its Website today.

Lenders were also among shares to gain.

Industrial & Commercial Bank of China Ltd, the nation's biggest listed lender and the second-biggest market component, rose 3.06 percent to 5.05 yuan. China Construction Bank Corp, the country's second-largest, added 2.91 percent to 6.01 yuan.

China's commercial banks have reduced their average bad-loan ratio to 6.1 percent as the industry enhances risk controls, the nation's regulator said yesterday. The main commercial banks had a combined 1.18 trillion yuan of sour debt as of June 30, down 1.94 billion yuan from the end of March, the China Banking Regulatory Commission said.

Elsewhere, Citic Securities Co, China's biggest publicly-traded brokerage, gained 3.63 percent to 23.96 yuan.

Citic said in a statement yesterday that first-half profit growth slowed to 13.3 percent. Net income rose to 4.8 billion yuan in the six months ended in June 30 from a year earlier. The company's profit doubled in the first quarter this year and rose fivefold from a year earlier.

Guangdong Kelon Electrical Holdings Co, China's biggest refrigerator maker, climbed 1.61 percent to 3.79 yuan. The company said it suspended a plan to issue shares and acquire assets from its controlling shareholder.

Shanghai Power Transmission & Distribution Co, the manufacturer of electrical equipment, was suspended from trading today. Parent Shanghai Electric Group Co will issue yuan-denominated shares as part of a merger with Shanghai Power, according to a preliminary sales prospectus posted on the securities regulator's Website on Friday.

(Shanghai Daily July 21, 2008)