SHANGHAI stocks rose in the morning session, led by air carriers, after media reports said passenger volumes increased last month.

The benchmark Shanghai Composite Index added 1.31 percent to close morning trading at 2,446.80. The Shenzhen Component Index, which tracks the smaller mainland bourse, increased 2.20 percent to 9,673.79.

China Eastern Airlines Corp jumped 4.52 percent to 6.70 yuan (99 US cents) after the China Business News reported that the Shanghai-based carrier's passenger numbers in June rose 70 percent from a year ago.

China Southern Airlines Co grew 3.15 percent to 6.23 yuan while Air China Ltd advanced 2.89 percent to 10.69 yuan.

Haitong Securities Co rose 1.44 percent to 9.18 yuan despite saying first-half net profit fell nearly one-third from a year ago due to weak stock markets.