China shares up on corporate profit outlook

China shares up for 7th day on company profit outlook; renewables gain ahead of Obama visit

• On 3:43 am EST, Monday November 9, 2009

SHANGHAI (AP) -- Chinese shares rose for a seventh straight session Monday on optimism about stronger corporate earnings.

The benchmark Shanghai Composite Index edged up 11.55 points, or 0.4 percent, to close at 3,175.58, its highest level since August 11. The Shenzhen Composite Index for China's smaller second exchange added 0.6 percent to 1,130.57.

"The euphoria carried on, as investors were confident to see a profitable fourth quarter based on reports for the past three months," said Li Xianmin, an analyst for Pingan Securities in the southern city of Shenzhen.

Data on trade and industrial growth due to be reported this week are expected to show China's economic rebound gaining strength. But analysts said they are unlikely to affect the market because expectations already are factored into stock prices.

Shares in companies linked to renewable energy rose ahead of U.S. president Barack Obama's visit to Beijing next week on hopes the two governments will discuss possible measures to promote the industries.

Xinjiang Goldwind Science & Technology Co., a major wind turbine maker, rose 3.1 percent to 30.9 percent, while Shenzhen Topraysolar Co. jumped 3 percent to 27.7 yuan.

Gold miners soared on higher gold prices. Shandong Gold Mining Co. surged 7.7 percent to 75.79 yuan and Zijin Mining Group Co. added 3.3 percent to 9.91 yuan.

Power producers were boosted by news report that the government might raise electricity prices soon.

Shanxi Zhangze Electric Power Co. climbed by the daily limit of 10 percent to 5.74 yuan, while Datang International Power Generational Co. advanced 6.2 percent to 9.79 yuan.

In currency markets, the yuan strengthened to 6.8267 to the U.S. dollar, compared to Friday's close of 6.8275.

Buzz up!