However the rising energy prices adversely impacted on airlines. China Eastern Airlines Corp declined 3.4%, Cathay Pacific fell 1.7%, China Southern plummeted 2.2% and Air China dropped 4.7%

Coal miner Shenhua Energy rose 0.2% after it produced and sold more fuel in the first quarter to satisfy rising demand.

Tsingtao Brewery Co Ltd plunged 8% after it reported that a hike of income tax from 15% to 33% for 2007 will undermine the company’s earnings. Earnings in the first quarter may be lowered to Rmb 135 million from Rmb 560 million.

SMIC tumbled after surging 19% in previous day trading after the company denied that it is close to a major tie-up. In addition, HSBC also downgraded the stock from “neutral” to “underweight”, citing that any suitor will not be able to mend the company’s chip making business.