China stocks edge up as legislature opens

BEIJING

China's stock markets rose Friday as the country's legislature opened amid hopes for new policies to spur growth, and brokerages got a boost from a news report futures trading might start next month.

The benchmark Shanghai Composite Exchange added 0.3 percent, or 7.69 points, to close at 3,031.06, recovering from a decline a day earlier. The Shenzhen Composite Index for China's smaller second exchange lost 0.3 percent, or 3 points, to 1,161.42.

"Rumors about monetary tightening which had caused a sharp fall of the market yesterday failed to be realized," said Peng Yunliang, a strategist for Shanghai Securities.

Gains were led by brokerages on hopes for added business after the chairman of the China Securities Regulation Commission was quoted by a state-run newspaper as saying futures trading might begin in April.

Everbright Securities Ltd. gained 4 percent to 27.32 yuan, while Southwest Securities Ltd. was up 2.3 percent at 16.81 yuan.

Banks were mixed after Premier Wen Jiabao said at the opening of the annual session of China's ceremonial legislature that regulators would tighten risk management, a step that might squeeze profits.

The country's biggest commercial lender, Industrial & Commercial Bank of China Ltd., gained 0.2 percent to 4.85 yuan. Bank of China Ltd. sank 0.7 percent to 4.15 yuan.

Oil producers also were mixed. PetroChina Ltd., Asia's biggest oil and gas producer, added 0.2 percent to 12.80 yuan. Sinopec, or China Petroleum & Chemical Co., gave up 0.1 percent to 11.04 yuan.

In currency markets, China's yuan declined to 6.8265 to the U.S. dollar, down from Thursday's 6.8264.