The key stock index in Shanghai set another record high this morning, led by strong performances from commercial banks after China Merchants Bank Co estimated its nine-month profit will double.

The Shanghai Composite Index, which covers yuan-backed A shares and hard-currency B shares, was up 0.97 percent in the morning session to close at 6,088.48, its highest level since the bourse started trading in 1990.

Cumulative turnover on the local bourse amounted to 97.33 billion yuan (US$13 billion) in half-day trading, compared with 104.87 billion yuan for the morning session on Monday. Gainers outnumbered losers by 457 to 390.

China Merchants Bank advanced 3.84 percent to 42.70 yuan after saying it expected net profit to more than double in the first nine months of this year from 4.47 billion yuan in the same period last year on loan growth and non-interest income.

Industrial and Commercial Bank of China, the country's biggest lender, added 4.58 percent to 8.22 yuan while Bank of China, the nation's second largest, rose 7.03 percent to 7 yuan.

China Construction Bank, the country's third biggest lender, swelled 1.91 percent to 10.14 yuan. China Citic Bank grew 2.11 percent to 11.60 yuan while China Minsheng Banking Corp increased 2.49 percent to 16.87 yuan.

Brokerages also paced the rally on optimism over their earnings growth. CITIC Securities Co, the country's largest listed broker, rose 3.30 percent to 109.50 yuan. Haitong Securities Co, the second biggest, was up 5.28 percent at 63.60 yuan.

(By Leo Zhang, Shagnhai Daily)