China Shrs Soar,Airlines Lead; Shanghai Near 2800

China shares soar midday, airlines lead on expectations of strong traffic growth during Olympics. Shanghai Composite Index +4.0% at 2776.28 in modest trade, expected to test 2800 psychological resistance soon. "Investors are regaining confidence because of the authorities' positive remarks about China's financial market," says Zhou Lin at Huatai Securities; notes Vice Premier Wang Qishan calls for stable financial market. Still, Zhou says it's difficult for index to sustain gains given recent bearish run. Airlines among market's big gainers, with Air China (601111.SH) limit-up 10% at CNY9.52, China Southern Airlines (600029.SH) also limit-up 10% at CNY7.92; but analysts remain cautious due to high oil prices. Shenzhen index +4.0% at 839.19