SHANGHAI'S key stock index ended higher in the morning session on better first-half profits.

The benchmark Shanghai Composite Index rose 1.52 percent, or 44.23 points, to close at 2,960.03 points. Turnover stood at 69.58 billion yuan (US$10.23 billion) at the midday break. Gainers outnumbered losers 803 to 60 and 3 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, gained 2.62 percent to close at 1,001.05 points.

Poly Real Estate, China's second-largest listed developer by market value, led property developers up after saying first-half net income rose 35 percent from a year earlier to 1.4 billion yuan.

Poly Real Estate Group added 2.32 percent to 24.71 yuan while Shanghai Lujiazui Finance and Trade Zone jumped 2.56 percent to 24.05 yuan.

Shanghai-based Shimao Co climbed 2.13 percent to 13.88 yuan and Gemdale Corporation was up 1.8 percent to 14.16 yuan.

China Vanke Co, the biggest listed property developer, advanced 2.81 percent to 10.99 yuan.

Airlines were strong as Air China, the nation's largest international carrier, reported its first-half profit had more than doubled to 2.88 billion yuan from a year earlier on fuel-hedging gains.

Air China surged 6.25 percent to 7.65 yuan, China Southern Airlines Co expanded 3.82 percent to 5.43 yuan and Hainan Airlines Co increased 4 percent to 4.68 yuan.

China Eastern Airlines hiked 3.36 percent to 5.53 yuan and Shanghai Airlines edged up 2.56 percent to 6.01 yuan.