NEWS > Business
Chinese share prices hit new record high
2007-09-24 03:06:42 Xinhua English

BEIJING, Sept. 24 (Xinhua) -- Chinese share prices hit a new record high on Monday as the Shanghai Composite Index gained 30.34 points, or 0.56 percent, to close at 5,485.01 points.

The Shenzhen Component Index rose 189.91 points, or 1.04 percent, to close at 18,418.47 points.

Leading companies in the nonferrous metal and property sectors performed well, with China Aluminium jumping 3.55 percent to 49.03yuan per share. Vanke A, China's largest listed property firm, rose 3.65 percent to reach 30.99 yuan per share.

SinoPec was up 3.71 percent to close at 18.99 yuan per share on the news that PetroChina will debut on the yuan-denominated market this year.

The Chinese stock markets saw volatile trading last week amid concerns over more government policies to rein in investment and imminent initial public offerings of large companies.

China Construction Bank will be listed on the Shanghai Stock Exchange on Tuesday and is expected to replace the Industrial and Commercial Bank of China as the largest heavyweight stock on the A-share market.

Shenhua, the country's largest coal producer, will start its share application from Tuesday in a bid to raise nearly 70 billion yuan.

The frequent IPOs come as the government encourages red chips to list on the mainland to absorb excess liquidity and help cool the red hot stock markets.

The government has also taken other measures to reduce liquidity. The Ministry of Finance issued about 35 billion yuan often-year special treasury bonds on Monday to the general public, which is believed to be able to divert money from the stock market.

Last week, the China Securities Regulatory Commission approved another fund management firm to buy stocks overseas. ChinaAMC has been granted a fund sales limit of 2.5 billion U.S. dollars and is applying for more.

Investors worry that a greater supply of stocks and diversion of money from the stock market may make it difficult for the share prices to rise.

The daily turnover remained below 30 billion yuan in September. The combined turnover on the two bourses was around 220 billion yuan (29.3 billion dollars) on Monday, lower than the 233 billion yuan on previous trading day.

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