THE Shanghai Composite Index rose in the morning session, as property developers rallied on a home buying subsidy scheme.

The key index edged up 0.36 percent, or 8.39 points, to 2,357.98 by noon break with turnover standing at 46 billion yuan (US$7.3 billion), extending its gain to the third consecutive day.

Wuhu, a mid-sized city in Anhui Province, announced a home buying subsidy scheme of 50 yuan a square meter for the purchase of homes between 70 to 90 square meters, and 150 yuan a square meter for homes smaller than 70 square meters, according to the local government's statement on its website yesterday.

Property developers rallied on the news, clocking a jump of 2.24 percent on average before the noon break. China Vanke, the nation's biggest listed developer soared 3.77 percent to 7.99 yuan. Poly Real Estate Group surged 4.07 percent to 10.99 yuan. Beijing Capital Development jumped 7.51 percent to 10.02 yuan.

However, premier Wen Jiabao reiterated on January 31 that China will stick with property market curbs to bring prices down to a reasonable level.

Hu Shijie, an analyst at Orient Securities, advised against holding shares of developers for the long term.

"The property curbs are unlikely to be loosened in 2012. Cities like Beijing and Shanghai will continue to impose restrictions," he said in a TV program.