Energy, textile drive Chinese shares to new high
Source: Xinhua Date: 2007-09-05
China's benchmark Shanghai Composite Index has broken the 5,300-point mark for the first time on Monday after hovering at a high level over expanded turnover in the morning session to 5,317.44 points, up 98.61 points from previous close.
The Shenzhen Composite Index on smaller stock market rose by 297.28 points from Friday close to 18,169.39 points.
Dealers attributed the parallel rises to market confidence following the weekend report on tightened overhaul of securities companies by regulators and the absence of sell-off
Vice President Xi Xiaoming of the Supreme People's Court of China was quoted by the Caijing Magazine on Monday that law markers were deliberating upon the revision of the Securities Law, requiring those who engage in insider trading and price rigging to bear civil responsibility.
Despite the lack of a legislation timetable, dealers say the authorities have shown a strong determination to rectify the market order and protect the interests of the vast individual investors. The morning surges may trigger short-term correction, they say.
Nearly 45 yuan-denominated A-shares on the Shanghai bourse have approached or exceeded the daily rise ceiling of 10 percent, with the surge advanced by silk, energy and steel shares. The market recorded 734 shares rising, 132 leveling-off and 133 declining.
Investors snapped up the shares of Silk Group which have grown the fastest 39.57 percent after news that the silk manufacturer based in Wujiang City of eastern Jiangsu Province will branch into real estate market by having a large silk shopping center.
The smaller Shenzhen stock markets saw 529 shares rising, 52 shares going flat and 116 dropping.
The total turnover on both markets amounted to 151.4 billion yuan, more than half of the Friday turnover of 246.1 billion yuan. (One U.S. dollar equals 7.55 yuan)
