China B-shares finished the morning higher following gains on Wall Street, even as investors remain anxious about when the US financial sector bailout plan is approved, dealers said.

"Investors are encouraged by the positive news from Wall Street," an analyst from Shanghai who asked not to be identified said. "However, they are still cautious with Congress not yet reaching agreement on the bailout plan."

He noted that new policies to boost the domestic market are also expected to be announced during the week-long holiday.

"Investors are waiting for a better opportunity to enter the market," he said, and projected an uptrend next month.

The Shanghai B-share Index rose 0.65 points or 0.50 pct to 131.69, while the Shenzhen B-share Index was up 0.75 points or 0.24 pct at 307.47.

In Shanghai, Inner Mongolia Yitai Coal rose 1.64 pct at 3.22 usd while Shanghai Zhenhua Port Machinery was up 3.14 pct to 0.92 usd.

Hainan Airlines rose 0.77 pct to 0.39 usd as oil fell more than 1 usd to below 107 usd a barrel.

In Shenzhen, Shandong Chenming Paper Holdings was up 2.11 pct at 4.84 hkd while CSG Holding Co rose 5.16 pct to 4.69 hkd.

China Merchants Property Development was up 0.90 pct at 7.86 hkd while China’s largest real estate developer China Vanke was flat at 5.26 hkd.

The FTSE/Xinhua China B 35 Index was up 33.23 points at 4,678.39.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, ended the morning down 14.94 points or 0.65 pct at 2,282.56.

(1 usd = 6.8 yuan; 7.8 hkd)