China shares rise but gains tempered by mixed earnings from major state-owned companies

China shares rise but earnings temper gains

SHANGHAI — Chinese shares rose Friday but gains were tempered by mixed earnings reports from major companies.

The benchmark Shanghai Composite Index edged up 7.26 points, or 0.3 percent, to close at 2,610.74. For the week, it lost 1.2 percent. The Shenzhen Composite Index for China’s smaller second exchange added 0.9 percent to 1,128.49.

Earnings reports this week were a mixed bag. China Telecom beat estimates while rival China Unicom fell short. PetroChina reported profit growth lower than its Western competitors.

“Investors are worried that profits will slow further in the third quarter,” said Peng Yunliang, an analyst with Shanghai Securities.

Companies based in China’s remote western region of Xinjiang gained on government plans to promote development of the province. Xinjiang Tianshan Cement Co. soared 5 percent to 25.5 yuan, while Xinjiang Zhongtai Chemical Co. added 1.9 percent to 19.84 yuan.

Medical-related companies rose on hopes for government plans to boost the pharmaceutical industry. China National Medicines Corp. climbed by 3.9 percent to 24.54 yuan, while Zhejiang Hisun Pharmaceutical Co. jumped 2 percent to 34.08 yuan.

In currency markets, the yuan strengthened to 6.7981 to the U.S. dollar from Thursday’s close of 6.7991.

Associated Press researcher Bonnie Cao in Beijing contributed to this report.