SHANGHAI stocks advanced today after data showed China's economic expansion slowed in the second quarter but was in line with market estimates - and fueled expectation that the central government will make efforts to bolster growth while promoting restructuring.

The benchmark Shanghai Composite Index rose 19.90 points, or 0.98 percent, to 2,059.39. Daily turnover was 88 billion yuan (US$14.4 billion).

China's gross domestic product (GDP) in the second quarter expanded 7.5 percent from a year earlier, moderating from a 7.7 percent rise in the prior quarter, the National Bureau of Statistics said today.

China's economy grew at 7.6 percent year on year in the first half of the year, data showed. The rate was in line with market expectations and was higher than the full-year target of 7.5 percent for 2013.

"Expectations for the government to introduce stimulus policies mounted after China posted weak GDP data, which would support the market to rebound further," said Northeast Securities.

China has set an annual average growth goal of 20 percent in the consumption of information products and services from 2013 to 2015 as the country is striving to boost domestic consumption to promote economic transition, according to a statement released after a meeting presided over by Premier Li Keqiang.

IT-related firms gained the most. Eastern Communications Co Ltd leaped 10 percent to 5.21 yuan. Fiberhome Telecommunication Technologies Co jumped 7 percent to 17.92 yuan. Shenzhen Kingdom Technology Co surged 8.5 percent to 16.17 yuan.

Brokerages gained among financial firms after China's securities regulator on Friday approved nearly doubling the investment quota to US$150 billion for Qualified Foreign Institutional Investors.

CITIC Securities, China's biggest listing broker, jumped 4 percent to 10.96 yuan. Haitong Securities rose 4 percent to 10.98 yuan. Founder Securities surged 6.4 percent to 6.15 yuan.

Xiao Gang, chairman of China Securities Regulatory Commission, today said China is working on a plan to expand the pilot over-the-counter equity transfer system nationwide as part of an effort to build a multi-layered capital market.