Shanghai index up, boosted by metal, real estate shares

Shanghai stocks rallied on Tuesday morning as metal producers surged on rising prices while property developers gained amid speculations that more cities will ease home purchase restrictions.

The key Shanghai Composite Index was up 0.96 percent, or 19.82 points, to 2,074.30. Turnover was 52 billion yuan (US$8.4 billion) by midday.

Aluminum producers led the gains of metal shares as aluminum price in London rose to a 16-month high. Shandong Nanshan Aluminum surged 9.9 percent to 5.90 yuan. Aluminum Corporation of China jumped 5.6 percent to 3.57 yuan.

Property developers advanced after the National Business Daily said the government of Wenzhou, a city in eastern Zhejiang Province lifted control on home purchases. Earlier, Suzhou removed curb on purchase of homes larger than 90 square meters.

Poly Real Estate, China's second-largest developer, rose 2.8 percent to 5.87 yuan. Gemdale Corporation added 1.9 percent to 9.19 yuan.

The People's Bank of China today refrained from draining cash from the country's money market in a bid to ease liquidity pressure ahead of 11 public offerings this week.