Compiled by Caijing staff

(Caijing.com.cn) China shares rose on September 17 amid investor optimism on the economy and monetary policy ahead of the National Day holiday, tracking an overnight global stock rally, as the benchmark Shanghai Composite Index climbed 2.02 percent to a one-month-high of 3,060.26 points.

"China's aggressive policy responses so far this year will likely continue to fuel rapid investment growth in the remainder of 2009," Qing Wang, an economist at Morgan Stanley, wrote in a report. Even a shift in monetary policy "is unlikely to dampen underlying real economic activity significantly," Wang wrote.

Turnover in Shanghai rose to 181.2 billion yuan from a five-day average of 163.4 billion yuan. Gainers led losers 12 to one.

The Shenzhen Component Index rose 1.45 percent to 12,473.61 points, with gainers leading losers 13 to one. Turnover was about 99.3 billion yuan, up from a five-day average of 93.3 billion yuan.

Software developers, computer hardware makers and communications equipment providers were the biggest gainers as investors opted for high-tech stocks at the expense of steel, cement and agriculture companies. The technology sector was boosted by an announcement from the Ministry of Industry and Information Technology that it had established an industry standard for the "Internet of Things," which refers to an intelligent network of objects, such as household appliances, that could be managed collectively.

Shenzhen Yuanwanggu Information Technology Joint Stock Co. (SZSE: 002161), a leading radio frequency identification chip maker, climbed the 10 percent daily limit to 17.36 yuan.

Shanghai Belling Corp. (SSE: 600171), an integrated circuit assembler, jumped the 10 percent daily limit to 7.6 yuan, while communications equipment firm Wuhan Yangtze Communication Industry Group (SSE: 600345) climbed 5.98 percent to 10.81 yuan.

Transportation, real estate and financial companies joined the rally with airport operator Shenzhen Airport Co. (SZSE: 000089) gaining 1.79 percent to 7.4 yuan, after forecasting its 2009 and 2010 performance would return to 2007 levels.

The second-largest insurer, Ping An Insurance Group (SSE: 601318), rose 4.01 percent to 53.23 yuan, after an official with the China Insurance Regulatory Commission said on Sept. 16 that insurers will be allowed to enter some non-insurance businesses, such as the operation of retirement homes, when the revised Insurance Law takes effect on October 1. The country's largest construction contractor, China State Construction Engineering Corp. (SSE: 601668), rose 0.76 percent to 5.32 yuan, after the company said its subsidiaries won three contracts worth a total of 4.2 billion yuan.

Meanwhile, the Ministry of Commerce will impose penalties on fully assembled vehicles from the United States as early as the end of October if evidence of dumping is found, the Shanghai Securities News reported on September 17. Domestic automobile makers got a boost from the news, with Anhui Jianghui Automobile Co. (SSE: 600418) gaining 8.39 percent to 8.14 yuan.

Top coal producer China Shenhua Energy (SSE: 601088) gained 3.36 percent to 34.74 yuan, after reporting August coal production rose 13.3 percent year-on-year to 17.9 million tons.

Industrial Securities Co. has completed preparations for an initial public offering and plans to submit an application to the regulator at the end of September, the Shanghai Securities News said September 17.

The Fujian-based broker will join Western Securities Co., Hongta Securities Co. and Shanxi Securities Co., which are all waiting for IPO approvals from the China Securities Regulatory Commission.

Stocks will keep fluctuating but will mostly be higher "with few negative factors in the market," said Chen Wei, analyst at China Minzu Securities.

Pacific Securities analyst Zhou Yu said, however, the market could face a correction after the National Day holiday, which officially begins October 1, with sentiment turning cautious.

1 yuan = 14 U.S. cents