China Shares Higher in Early Trade; Auto Makers Gain

China shares were higher in early trade, with limited impact seen from weakness in overseas markets, dealers said.

Automakers led the gains, spurred by M&A activity in the sector.

At 9:41 am, the index rose 26.73 points to 4,372.08, after opening up 3.25 points.

Shanghai Automotive Co Ltd rose 0.90 yuan to 27.74, after its parent, Shanghai Automotive Industry Corp (SAIC), and Nanjing Automobile (Group) Corp signed a letter of intent Friday for a strategic alliance. They also announced exploratory talks for a possible 'complete union' of the two major auto groups.

Anhui Jianghuai Automobile Co Ltd added 0.31 yuan to 8.94.

(1 usd = 7.57 yuan)