Stocks News
- Chinese shares rebound to record high
Date: 22-Mar-2007 Sources: (Xinhua Online)
Chinese shares rose to a record high on Wednesday just three weeks after the biggest single-day fall in a decade that jolted the international markets.
The benchmark Shanghai Composite Index which covers both A and B shares closed at 3,057.38 points, up 25.18 points, following a rise in interest rates on Monday which was aimed at soaking up excessive liquidity.
The market was buoyed by gains in the real estate sector, with many shares rising by the maximum daily cap of ten percent.
The latest record underscores the persistent bullishness of Chinese investors.
The central banks raised the deposit and lending interest rates by 0.27 points on Monday to 2.79 and 6.39 percent respectively in another attempt to rein in hefty investment and rocketing trade.
'The interest rate hike has had a limited impact on curbing the investment frenzy,' said Sun Lixing, professor with the International Economic Research Institute under the Shanghai Academy of Social Sciences.
'The investment rush will come to a halt when people shrug off their fear of future unpredictability. Meanwhile. more money will be diverted from bank savings into consumption,' he said.
An analyst with Lianhe Securities expected more stringent monetary policies to come out aimed at stabilizing the stock market.
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