China B-shares finished the morning session higher, with Shanghai Dingli Technology Development Co extending its sharp gains after its parent assured that it will not undertake any quick sale of shares coming out of lockup.

Shanghai Dajiang and Waigaoqiao Free Trade Zone Development, which plunged in previous sessions due to their private placement plans, both rebounded significantly this morning.

The Shanghai B-share Index rose 8.23 points or 3.96 pct to 215.90, while the Shenzhen B-share Index gained 10.86 points or 2.25 pct to 494.16.

"Most stocks in the China market are attractive now in terms of price-to-earnings ratios," said a Shanghai-based analyst who asked not be identified.

"The market is also in a mild uptrend following regulators' pledge to protect its stability," the analyst added.

In Shanghai, Zhenhua Port Machinery rose 4.28 pct to 1.558 usd, while Huaxin Cement was up 4.86 pct at 2.350 usd.

Shanghai Dingli rose by another 10 pct, the daily limit, to 0.597 usd. The company's parent has promised not to sell its A-shares if the price is below 20 yuan.

Shanghai Dajiang jumped 10 pct to 0.377 usd. The livestock company said earlier it plans to issue 390 mln A-shares via a private placement.

Shanghai Waigaoqiao Free Trade Zone Development added 4.69 pct to 0.736 usd. The property firm said yesterday that it has won regulatory approval to issue an additional 265 mln A-shares to specific investors.

Jinzhou Port was down 8.44 pct at 0.640 usd. The company plans to issue 246 mln additional A-shares at 7.77 yuan each to PDA Corp, parent of Hong Kong-listed Dalian Port (PDA) Co. Its A-shares ended the morning down 10 pct at 8.13 yuan.

In Shenzhen, Shandong Airlines added 3.94 pct to 3.43 hkd and Chongqing Changan Automobile (SZB 200625; SZA 000625) advanced 3.18 pct to 3.24 hkd.

China Vanke, the country's top property developer by market value, gained 2.44 pct to 10.50 hkd.

The FTSE/Xinhua China B 35 Index was up 220.26 points at 7,850.58.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, ended the morning up 79.62 points or 2.84 pct at 2,882.63.

(1 usd = 6.9 yuan; 7.8 hkd)