China shares edge higher on gains in metals, food

SHANGHAI, China—Chinese stocks edged higher Thursday after declining for three straight days as investors snapped up bargains in metals and food-related shares following recent losses.

The benchmark Shanghai Composite Index was virtually unchanged, gaining 0.03 percent, or 0.74 points, to 2,277.41. But the Shenzhen Composite Index, of China's smaller, second market, rose 0.7 percent to 631.80 on gains in foreign currency-denominated "B-shares."

Gains were limited by a lack of buying enthusiasm given the absence of any new policy moves, analysts said.

"Funds are very actively moving in and out of the market," said Zhang Linchang, a strategist for Guotai Junan Securities. "The longer the investors wait for the market-boosting policies, the greater their disappointment," he added.

Metals shares, among the biggest losers in recent days, bounced back despite the lack of a major change in global market prices.

Yunnan Chihong Zinc & Germanium Co. soared 8.39 percent to 11.76 yuan, while shares in Aluminum Corp. of China, or Chinalco, the country's biggest aluminum maker, gained 1.14 percent to 9.72 yuan.

Food and beverage stocks rose, encouraged by the news of Coca-Cola Co.'s bid for China Huiyuan Juice Group Ltd. VV Food & Beverage Co. surged by the daily 10 percent limit to 4.68 yuan, while Bright Dairy and Food Co. rose 3.1 percent to 5.67 yuan.

In currency markets, the U.S. dollar was traded at 6.8371 yuan around 0900 GMT on the over-the counter market, down from Wednesday's close of 6.8439.