SHANGHAI'S B-share index rose for the first time in five days, boosted by a midday jump in Hong Kong stocks. Even though Hong Kong stocks fell late in the day, B shares got a lift from the Hong Kong market, Li Ming, an analyst at Guotai Securities, said. The CLSA Shanghai B share index rose 0.2 per cent to 646.44 points. The official Shanghai B index rose 0.4 per cent to 56.53 points, just above a three-month, low on US$2.32 million in turnover. Helping boost Shanghai stocks was the government's decision to cut the tax rebate for exporters to nine per cent, easing the prospect of a cash crunch for domestic exporters, some analysts said. China cut the tax rebate from 17 per cent on July 1. Even though companies will now get a lower rebate as of January 1, they are now more likely to get it in the first place. China has not paid rebates since March, saying its rebate bill is double the 55 million yuan (about HK$51 million) budgeted for such payments. 'That could be part of it,' Cynthia Wong, at Morgan Grenfell in Hong Kong, said. 'Those who export would obviously benefit from such a rate cut.' Shanghai Chlor Alkali Co, which sells many of its products overseas, rose 2.1 per cent to 29 cents on trading worth $152,000. Shanghai Lujiazui Development, a Pudong developer whose tenants will include many import-export companies, rose 1.4 per cent to 69 cents on trading worth $126,618. Rival developer Shanghai Waigaoqiao Free Trade Zone Development Co was unchanged at 39.6 cents on trading worth $311,450. The most active stock, Shanghai Dazhong Taxi Co, was unchanged at 82 cents on $381,600 worth of trading. Shanghai stocks have fallen steadily since late June. Even so, the Shanghai market 'has been and will continue to be a hunting ground for fund managers looking for quality stocks', Ms Wong said. The Shanghai composite index, which tracks mostly A shares reserved for domestic investors, rose 14.43 points to 716.83 points. Shenzhen B shares were driven higher by Jiangling Motors, which jumped 13.8 per cent. The CLSA Shenzen B-share index rose 0.3 per cent to 728.01 points. The official B share index in Shenzhen rose 3.38 points to 687.09 points. Altogether in Shenzhen, $2.67 million in trades was done, up from $1.57 million on Tuesday. The 13.8 per cent rise to HK$1.68 in Jiangling Motors came on turnover of $1.3 million. That was well up on the HK$1.192 price at which its shares were sold last month. Ford, the company's new partner in a joint venture to make light trucks, paid almost twice as much for its 20 per cent stake in Jiangling, leading to speculative buying, mainly by domestic investors, of the small amount of shares remaining. China Southern Glass was the second most active stock on trade of $421,000.