Media stocks lift index to 8-month high

Shanghai stocks rose to an eight-month high yesterday on a strong showing by media shares because of a government plan to promote new media.

The Shanghai Composite Index added 0.26 percent to 2,245.33 points, the highest close since December 5.

The central government approved on Monday a plan to promote new media, giving a fillip to the sector.

Huang Wei, analyst at Zheshang Securities, said the government's plan to transform the traditional media such as newspapers, TV and broadcast, and publishing is expected to provide opportunities for investors.

Northern United Publishing & Media gained by the maximum daily limit of 10 percent to 8.98 yuan (US$1.46) as did Shanghai Xinhua Media which ended at 10.02 yuan.

China Petroleum and Chemical Corp, also known as Sinopec, gained after media reported that some heavyweight companies such as China Life Insurance and Tencent are said to bid for a stake in the country's top oil refiner.

Sinopec gained 2.66 percent to close at 5.41 yuan.