China's main stock index enjoyed a bullish performance, allowing
them to reach a new record high Wednesday as market analysts warned
that vibrations would affect the equity market in the next few
days.
The benchmark Shanghai Composite Index closed at 3,057.38 points
after a 0.83 percent, an all-time high while the Shenzhen Composite
Index gained 1.36 percent to end the day at 805.68. Meanwhile, the
Shanghai and Shenzhen 300 Index of major companies enjoyed a strong
day 1.12 percent to level out at 2,702.59.
A good performance by automobile shares contributed to the rise
with, for example, the First Automobile Works surging 8.82 percent
to 8.14 yuan with Chang'an Automobile seeing its stock shoot up
7.83 percent to 15.15 yuan.
Jiangxi Copper used its daily 10 percent fluctuation limit to
the fullest limit for the second day in a row, rising to 19.83 yuan
after disclosing its plan to raise 4 billion yuan by purchasing
assets from its parent company and tapping mining resources through
a private share issue.
Financial shares, however, did not feel the same level of
success. On the positive side, Pudong Development Bank gained 4.55
percent to 26.17 yuan with Shenzhen Development Bank edging them
slightly, climbing 5.02 percent to 19.89 yuan.
However China Life, the country's biggest insurer dipped 0.72
percent to 34.16 yuan with major rival Pingan Insurance taking a
hit with a 1.49 percent fall to 45.1.
Although confidence remains high of the market's long-term
buoyancy, the analysts still predicted the market to fluctuate in
the following days.
Shenyin Wanguo Securities staff warned that little room was left
for further rise but that structural risks remained constant while
Tiantong Securities added their approval, noting a structural
adjustment would continue.
Last month's Shanghai Composite Index fall remains seared into
the minds of stockbrokers when the market hit a then record high
3,040.60 before crashing by close to 9 percent, the largest daily
loss in a decade.
Amidst maneuvers taken to let the stock market fever simmer
down, China's listed firms were banned Tuesday from investing share
sale profits in securities.
The People's Bank of China, the central bank, announced a 0.27
percentage point interest rate rise at the weekend, but this did
nothing to lower enthusiasm. The Shanghai Composite Index started
the week with a three percent rise on Monday, with a further 0.59
percent rise on Tuesday.
(China Daily March 22, 2007)