Shanghai's key stock index was almost unchanged in the morning session today.
Oil-related shares gained on optimism refining costs will drop.
The Shanghai Composite Index inched up 0.05 percent, or 1.46 points, to 2,847.58 at 11:30am.
Losers in the Shanghai market outnumbered gainers 504 to 293 while 31 remained unchanged.
The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, dipped 0.57 percent, or 4.90 points, to 849.93.
China Petroleum & Chemical Corp, also known as Sinopec, and PetroChina Co rose as crude prices yesterday dropped to the lowest since June 5.
Sinopec, the country's biggest oil refiner, added 2.36 percent to 11.27 yuan (US$1.65). PetroChina, the country's second-largest refiner and the biggest stock on the index based on market capitalization, increased 0.33 percent to 15.24 yuan.
Crude oil for August delivery dropped 2.4 percent to US$127.95 a barrel in New York yesterday on forecasts a Gulf of Mexico hurricane will miss fields and as the US dollar rebounded against the euro, reducing the appeal of commodities. Oil is down more than US$18 from a record US$147.27 on July 11.
The cheaper oil price also helped airlines this morning.
Air China, the country's largest carrier by market value, jumped 3.39 percent to 10.98 yuan. China Southern Airlines Co, the largest by fleet size, jumped 3.44 percent to 8.43 yuan while China Eastern Airlines Co climbed 5.90 percent to 7.90 yuan.
Jiangxi Hongdu Aviation Industry Co, the Chinese aircraft maker, advanced 1.21 percent to 17.51 yuan. The firm said yesterday that its first-half profit probably rose more than 200 percent from a year earlier on increased sales.
On the losing side, Shanxi Taigang Stainless Steel Co, China's biggest stainless steel producer, was down 1.31 percent to 10.51 yuan. The company said yesterday that it plans to raise about 3.66 billion yuan by selling 350 million shares to fund faster expansion.
Yunnan Chihong Zinc & Germanium Co, China's fifth-largest zinc producer, lost 3.53 percent to 17.20 yuan. The company said yesterday that first-half profit fell 69 percent to 205 million yuan after prices declined and snowstorms cut output and sales.
Xugong Science & Technology Co said parent Xuzhou Construction Machinery Group's agreement to sell a stake to US private equity company Carlyle Group has expired. The parent isn't planning to continue cooperation with the buyout firm, Xugong Science, the listed unit of China's biggest maker of construction equipment, said in a statement today. Xugong Science rose 2 percent to close at 4.53 yuan on June 12, when trading was suspended.
