Chinese shares rise for 3rd day

Chinese stocks yesterday rose for the third straight day, led by ethanol gasoline-related shares as China plans nationwide use of the fuel by 2020.

The Shanghai Composite Index added 0.14 percent to 3,384.15 points. The Shenzhen Component Index gained 0.43 percent to 11,091.49.

Ethanol fuel contains 10 percent corn. 

It is commonly used worldwide since it is believed to cut carbon monoxide and carbon dioxide emissions and help ease the energy supply bottleneck.

China aims to build an advanced liquid biofuel system and put into operation a demonstration facility that will be able to produce 50,000 tons of cellulosic ethanol a year by 2020.

Shares of Shandong Longlive Bio-Technology surged by the daily limit of 10 percent, and Shandong Denghai Seeds Co gained 6.91 percent.

Steelmakers also rose amid growing profits.

In the first seven months of the year, China’s steelmakers reaped 162.5 billion yuan (US$25 billion) in profits, up 101.5 percent from a year ago, according to the National Bureau of Statistics.

Liuzhou Iron and Steel Co surged by the daily limit of 10 percent, and Lingyuan Iron and Steel Co rose 6.04 percent.