China shares slightly higher in early trade; airlines remain strong

China shares were slightly higher in early trade with airlines continuing to rise amid optimism over foreign investment in the sector, dealers said.

At 9:42 am, the benchmark Shanghai Composite Index rose 7.18 points or 0.14 pct to 5,328.24, after opening up 12.35 points.

China Eastern Airlines Corp (SHA 600115; HK 0670; NYSE CEA) soared 1.06 yuan or by the 10 pct daily limit to 11.62. It rose 10 pct yesterday after announcing over the weekend that it has agreed to sell a combined 24 pct stake to Singapore Airlines and Singapore government investment arm Temasek for 7.2 bln hkd.

Shanghai Airlines Co Ltd (SHA 600591) added 1.18 yuan to 16.50, while Air China Ltd (SHA 601111) rose 1.39 yuan to 22.50.