SHANGHAI stocks rose this morning on home builders after the media reported that the government may relax control on the financing of property developers.
The key Shanghai Composite Index added 2.95 points, or 0.13 percent, to 2,254.75. Turnover was 48.1 billion yuan (US$7.9 billion) by midday.
Chinese regulators are considering loosening control on refinancing by property developers on condition that funds raised are not invested in property businesses, Shanghai Securities News reported, citing unnamed sources at an investment bank.
Six real estate companies have launched refinancing plans since early January and are still waiting for approval by the China Securities Regulatory Commission, the report said.
Poly Real Estate, China's second-largest developer, advanced 1.7 percent to 12.28 yuan. Gemdale Corporation gained 1.7 percent to 7.58 yuan.
Media and entertainment companies surged. Beijing Gehua CATV Network Co soared by the daily limit of 10 percent to 7.62 yuan. China Television Media rose 3.4 percent to 14.20 yuan. Jiangsu Phoenix Publishing & Media Corp climbed 1.7 percent to 8.17 yuan.
Financial stocks retreated. China Merchants Bank lost 1.2 percent to 13.71 yuan. Industrial Bank Co fell 1.5 percent to 17.83 yuan. China Minsheng Banking Corp shed 1.2 percent to 10.32 yuan.