* Shanghai composite index up 0.4 pct, CSI300 gains 0.5 pct
* Supported by strength in small caps
* Worries remain about tight money condition, to cap gains
By Chen Yixin and Kazunori Takada
SHANGHAI, Dec 25 Chinese shares edged up on
Wednesday, extending their rise from the previous session as
short-term interest rates eased further from six-month peaks and
small caps rebounded.
The Shanghai Composite Index, which tracks all
shares on the Shanghai board, was up 0.4 percent at midday. The
CSI300 index of the top Shanghai and Shenzhen listings
gained 0.5 percent.
The ChiNext composite index, which consists
mainly of small tech shares listed in Shenzhen, rose 2.1
percent, adding to gains from the previous day.
Hong Kong markets were closed for Christmas holiday and will
reopen on Friday.
Analysts said while money market rates were showing signs of
stabilising, worries still remain ahead of the year end and that
is likely to limit gains in shares.
"Such small caps are quite easy to speculate using a small
amount of money," said Zhang Qi, analyst at Haitong Securities
"But as money conditions ahead of the year-end are still
tight, the large-cap shares are unlikely to rise sharply."
China's short-term money market rates extended their fall
from six-month peaks on Wednesday as corporate tax refunds
deposited to commercial banks helped ease liquidity conditions,
Fourteen shares, including Shenzhen Maxonic Automation
Control Co, Ningbo Xianfeng New Material Co
and Jiangsu Skyray Instrument Co, in the
ChiNext index jumped by their 10 percent daily limit.
($1 = 6.2547 Chinese yuan)
(Editing by Himani Sarkar)