CHINA'S B-share markets in Shenzhen and Shanghai both ended higher yesterday. The Credit Lyonnais Shenzhen B index ended at 1,296.29 points from 1,266.93, a rise of 2.3 per cent. Its counterpart in Shanghai gained nearly 40 points, or 4.4 per cent, to close at 924.58. The rises were inspired by the top-level Communist Party plenum which endorsed further, faster economic reforms, brokers said. The Credit Lyonnais Shenzhen A share index rose 42.2 points, or two per cent, to 2,081.24, while its Shanghai counterpart soared 149.5 points, or 2.99 per cent, to close at 5,140.73. Gains were almost across the board on Shanghai's A share market. Shanghai Lingguang Industrial was the leader, rising 2.38 yuan to 18.28 yuan. It peaked at 18.78, up 7.94, but fell on profit-taking. The rise was triggered by market rumours that Hengtong Industrial in southern China had contacted glass-maker Lingguang about a deal to buy its state shares, a broker said. Shanghai Shenhua Industrial was the exception, falling three yuan to 85.90 yuan, after Shenzhen Vanke said it did not aim for a full acquisition but wanted only a shareholding. ''That crushed speculators' hopes to push prices up further,'' one broker said. Qu Jianguo, chairman and founder of Shenhua, said on Sunday: ''As a public company, Shenhua welcomes any strong investors who wish to take a stake in the firm and support its growth. Such a move can only bring greater benefits to our shareholders. ''The acquisition will be valuable to support development of the securities market and a more effective shareholding system.'' One of Shanghai's first listed companies, Shenhua is involved in transport, hotels, property, trading and manufacturing. The deal was widely seen as China's first friendly takeover bid last week, when Shenzhen Vanke launched a surprise raid in the market to snap up five per cent of Shenhua's stock. However, Vanke has since said that under the takeover rules, a full takeover would be very expensive because it had to announce increases in its stake, which would encourage speculation in its shares and a rise in the share price. The Shanghai B share market enjoyed rare active trading as overseas investors built up their stakes. Prospects that China might remove credit curbs and speed up economic development by the end of the year had recaptured the attention of foreign funds, one broker said. Shanghai New Jinjiang was the biggest winner, gaining 10 cents to 70 Hong Kong cents, with 2.57 million shares traded. Shanghai Forever Bicycle made its debut, closing up on its issue price, with 5.81 million shares changing hands.