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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: China shares edge up on fuel tax cut AP - Saturday, December 20 SHANGHAI, China - Chinese shares edged up Friday as a cut in government-set fuel prices boosted airline stocks, while banks fell after a brief rally on hopes of an interest rate cut. The benchmark Shanghai Composite Index rose 0.1 percent, or 2.77 points, to close at 2018.46. The Shenzhen Composite Index for China's smaller second exchange added 0.9 percent to 622.9. Volume was small and analysts said investor confidence was weak despite a recent string of government measures to spur economic growth. The government announced a price cut late Thursday for gasoline, diesel and jet fuel, which will help airlines, factories and others that are being squeezed by high energy prices and a slump in sales. "The stimulation of government policies and the expectation that company profits will slump next year meshed together," said Mao Sheng, an analyst for Huaxi Securities. "The mix led to the fluctuation of the market." Air China Ltd. gained 1.1 percent to 4.62 yuan. China Eastern Airlines Corp. jumped 4.9 percent to 4.46 yuan, and China Southern Airlines Ltd. rose 2.8 percent to 3.71 yuan. China Petroleum & Chemical Corp., also known as Sinopec, Asia's biggest oil refiner by volume, added 0.1 percent to 7.94 yuan. Banks dropped after a hoped-for interest rate cut failed to materialize. Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, fell 1 percent to 3.82 yuan. Bank of China Ltd. declined 0.9 percent to 3.17 yuan, and China Construction Bank, Ltd. lost 1.2 percent to 4.15 yuan. In currency markets, China's yuan weakened to 6.8380 to the U.S. dollar in over-the-counter trading around 0800 GMT, down from Thursday's close of 6.83410. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy Stocks up after govt backs loans to automakersAP - 25 minutes ago President Bush: Automakers to get $17.4BAP - 1 hour 4 minutes ago Japan cuts rates to near-zero amid dire world economic outlookAFP - Saturday, December 20 Global economy to contract in 'severe' 2009 recession: banking groupAFP - Saturday, December 20 Related Articles: Business US STOCKS SNAPSHOT-Wall St rises after auto aid packageReuters - 21 minutes ago Citic Pacific approves loan deal with parent: reportAFP - 23 minutes ago Stocks up after govt backs loans to automakersAP - 25 minutes ago Turkish bonds surge after surprise rate cutReuters - 26 minutes ago Turkish Oct c/a gap $2.646 bln, exceeds forecastReuters - 30 minutes ago Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Global economy seen sinking into 'severe' 2009 recession: report Oil prices slump to more than four-year lows under 38 dollars Actress Jennifer Aniston appears naked in GQ magazine Ageing L'Oreal heiress defends billion-dollar giveaway 'Orderly' bankruptcy mulled for US carmakers View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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