Shares close above 4,000 points; turnover hits new high
(chinadaily.com.cn/Xinhua)Updated: 2007-05-09 17:18
China's shares prices kept bullish run on Wednesday as the benchmark Shanghai Composite Index stayed above the psychological 4,000-point mark at the close for the first time.
The record high came as investors shrugged off central bank governor Zhou Xiaochuan's earlier warning on potential stock bubbles.
The key Shanghai index, which covers both A- and B-shares, climbed 1.60 percent, or 63.07 points, to finish at all time high of 4,013.08 points despite profit taking brought down the index by 0.60 percent in the morning trade.
The component index on the smaller Shenzhen Stock Exchange rose 1.02 percent, or 116.62 points, to 11,517.75 points.
Combined turnover of the two bourses hit record high of 380.4 billion yuan (49.4 billion U.S. dollars).
Heavy influx of investor cash helped to drive up the stock prices as more individual investors transferred their savings to the stock markets from the low yielding bank accounts.
The Shanghai index has gained 50 percent this year after soaring 130 percent last year.
In the first quarter to end March, 4.78 million stock accounts were opened in China and in April alone, another 4.5 million new accounts were set up.
Blue chips led the rally. China Unicom, China's second-largest mobile phone operator, rose by the daily limit of ten percent to 6.35 yuan.
Industrial and Commercial Bank of China added 5.47 percent to 5.78 yuan, and Bank of China gained 7.77 percent to 6.10 yuan.
China Vanke, the country's biggest publicly traded property developer, climbed by the daily limit of ten percent to 21.88 yuan.
Analysts said the pressure of profit taking has become heavier after the stock index broke 4,000-point mark.
Wan Bing, an analyst with Guangfa Securities, warned investors of potential corrections and advised profit taking from shares that saw pretty high gains.
The benchmark Composite Index on the Shanghai Stock Exchange closed at 4,013.09 points at 15:00 on Wednesday, up 1.60 percent from the previous close.
Graphical chart of Composite Index on the Shanghai Stock Exchange. [stockstar.com]
The Component Index on the Shenzhen Stock Exchange closed at 11,517.75 points at 15:00 on Wednesday, up 1.02 percent from the previous close.
Graphical chart of the Component Index on the Shenzhen Stock Exchange. [stockstar.com]
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