SHANGHAI stocks gained this morning as rising transport-related stocks and financial shares offset the decline of distilleries. The key Shanghai Composite Index edged up 0.31 percent to 2,304.87 points with a turnover of 48.8 billion yuan (US$7.9 billion) by midday.

"The market is likely to fluctuate due to concerns over housing curbs, liquidity situation, release of non-tradable shares, and reboot of initial public offerings," Donghai Securities said today.

Transport-related stocks led the market up after the National Development and Reform Commission, China's top planning agency, yesterday issued a guidance for the development of multimodal transportation hubs in 42 cities.

Jiangxi Hongdu Aviation Industry Co leaped 5.8 percent to 17.40 yuan. Hainan Airlines Co advanced 2.6 percent to 4.68 yuan. Shanghai Shentong Metro Co climbed 2.8 percent to 6.87 yuan.

Most lenders increased. Bank of Communications rose 1.3 percent to 4.86 yuan. Industrial Bank added 1 percent to 19.77 yuan. But Agricultural Bank of China shed 0.4 percent to 2.85 yuan and Bank of China lost 0.3 percent to 2.98 yuan after both banks posted slower growths in net earnings in 2012.

Distilleries fell the most. Kweichow Moutai Co, a leading producer of high-end liquor in China, lost 1.7 percent to 167 yuan. Shanxi Xinghuacun Fen Wine Factory Co sank 2.4 percent to 33.95 yuan. Sichuan Tuopai Shede Wine Co slipped 2.8 percent to 20.47 yuan.