Chinese Online Class - Index overcomes monetary tightening; hits one-month high

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BIZCHINA / Center

Index overcomes monetary tightening; hits one-month high

By Ding qi (chinadaily.com.cn)
Updated: 2007-07-23 17:04

Investors stare at the electronic board at an exchange in Jilin City in
Northeast China's Jilin Province.?Monday benchmark Shanghai Composite
Index closed at 4213.36, 3.81 percent higher than last Friday's close.
[newsphoto]

Contrary to most predictions, the weekend monetary tightening decisions
cast little impact on the Chinese A-share market and pushed the index
dramatically upward to a one-month high, symbolizing a major recovery of
investor confidence after the month-long correction.

The bench mark Shanghai Composite Index continued Friday's bullish trend
with a high open at 4,091.24. Led by strong performances of blue-chips
like Sinopec and Baosteel, the index advanced past important markers at
4100 and 4200 points successively before closing at 4213.36, 3.81 percent
higher than last Friday's close.

The Shenzhen Component Index, tracking the smaller Shenzhen Exchange,
performed even better with a 5.38 percent gain and closed at 14139.27.

Transaction value expanded greatly for both markets. The bourse of
Shanghai claimed 154.33 billion yuan worth of share trading, while the
market of Shenzhen traded 76.46 billion yuan within the day. Both topped
the month's record and sent an encouraging sign of more participation.

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Shanghai Composite Index
Source: www.sina.com.cn?

Performances of individual share performed even more strongly. Of all the
shares listed in the two markets, more than 100 stocks sealed at their
maximum rising cap. Only ten went lower in both markets. Stocks of banks
and property sector continued their rally. Other sectors ranging from
steel to paper-making and communication also revealed their attraction.
Baosteel, China's leading steel maker, staged a maximum daily gain and
closed at 12.07 yuan. Paper manufacturer Huatai, Communication giant
China Unicom also performed well today.

However, shares of insurers like China Life and Ping'an Insurance made
the loser list, probably due to worries that profit margins may not
exceed the rising interest rates.

(For more biz stories, please visit Industry Updates)

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