Plan for coal firms pulls up key share index

Shanghai stocks rose yesterday, helped by coal shares which were lifted by a Chinese government plan to curb imports and cut output.

The Shanghai Composite Index gained 0.31 percent to 2,339.14 points.

The coal industry was strongly boosted by the National Development and Reform Commission's plan to restrain coal imports and cut domestic production, which may lift prices.

Jiang Zhimin, vice president of the China Coal Industry Association, said coal producers across the country have agreed to cut production by an annual 10 percent in the second half of this year.

"The coal demand in the recent two years has remained low due to the declining trend in the Chinese economy," China Securities said.

Yunnan Yunwei Co rose by the daily limit of 10 percent to 4.62 yuan (75 US cents), Shanxi Antai Group surged 9.91 percent to 3.55 yuan while Sdic Xinji Energy gained 8.16 percent to close at 4.11 yuan.