China shares higher in early trade on strong corporate earnings

China shares were higher in early trade with investors encouraged by strong earnings growth in major financial stocks.

At 9:45 am, the Shanghai Composite Index was up 65.77 points or 1.22 pct at 5,459.11.

In preliminary announcements, China Merchants Bank Co Ltd said 2007 net profit is expected to rise about 110 pct, and CITIC Securities Co Ltd (SHA 600030) projected 2007 net profit growth of more than 400 pct.

Trading in these companies' shares will resume at 10:30 after a one-hour suspension.

Financial stocks were firmer. Bank of Communications Co Ltd (SHA 601328; HK 3328) gained 0.49 yuan to 15.82, and Industrial and Commercial Bank of China (SHA 601398; HK 1398) added 0.17 yuan to 8.14.

Energy stocks were also stronger, with China Petroleum & Chemical Corp (Sinopec) (SHA 600028; HK 0386; NYSE SNP) rising 0.59 yuan to 24.19.

PetroChina Co Ltd (SHA 601857; HK 0857) advanced 0.15 yuan to 31.24.

Air China Ltd (SHA 601111) rose 0.27 yuan to 29.16 after Cathay Pacific Airways Ltd said it will consider teaming up with Air China's parent China National Aviation Corp (CNAC) to form a strategic alliance with China Eastern Airlines (CEA) if a bid by Singapore Airlines and Temasek to buy a stake in CEA is voted down today.

(1 usd = 7.3 yuan)