CHINA / National |
Share prices surge to new record(AP)Updated: 2007-02-16 13:49 Shanghai -- Shanghai's benchmark stock index zipped past the psychological benchmark of 3,000 to a new record Friday, lifted by institutional investors ahead of start of the Year of the Pig -- traditionally thought to bring good luck and prosperity. The Shanghai Composite Index index opened at a record high 3,018.18 on Friday, up 0.84 percent from its record close Thursday of 2,993.01. The benchmark for China's smaller market, the Shenzhen Composite Index rose 0.8 percent to 756.86. Chinese markets tend to surge ahead of the lunar new year, which begins this year on February 18, possibly on government supported buying aimed at giving the markets an auspicious start. According to the Chinese zodiac calendar, the upcoming year is the Year of the Golden Pig, a time expected to bring good luck and prosperity. Heavyweight Baoshan Iron & Steel gained 1.5 percent to 9.44 yuan while CITIC Securities rose 1.8 percent to 42.50 yuan. Chinese mainland's financial markets will be closed February 17-25 for the holiday. Chinese share prices doubled last year as investors piled into the market following the completion of shareholding reforms that helped to reduce worries over a potential flood of shares entering the market. So far this year, the market has been extremely volatile. For example, the benchmark Shanghai index plunging nearly 5 percent on January 31 amid worries over high stock valuations, but has since rallied back. China still limits foreigners' purchases of the yuan-denominated stocks that make up the biggest share of the markets, though that is gradually changing as regulators allow increasing participation by qualified foreign institutional investors. Meanwhile in currency dealings, the Chinese yuan also climbed to a fresh high against the dollar, boosted by the greenback's weakness against the Japanese yen. China's central bank set the official, or parity, rate for the dollar at 7.7408 yuan Friday morning, its lowest level against the Chinese currency since Beijing set up the present trading system in July 2005. The parity rate for the yuan is the weighted average of prices given by market makers, excluding the highest and lowest offers. |
|