Mainland stocks rise to record at noon break_Market-News—China Economic Net
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Mainland stocks rise to record at noon break
Last Updated(Beijing Time):2007-05-08 14:13

Chinese Mainland stocks rose to a record, posting the biggest gains in the region, as funds poured in to the market after a week-long holiday. Citic Securities Co and China Vanke Co led the advance.

The Shanghai Composite Index, which tracks the bigger of domestic stock exchanges, rose 2.9 percent to 3,952.09. The Shenzhen Composite Index, which covers the smaller one, added 3.5 percent, to 1,101.73.

``Investors have had to wait for the end of the holiday to buy more stocks,'' said Lu Yizhen, who oversees US$640 million of shares at Citic-Prudential Fund Management Co in Shanghai. ``It's obvious that cash is flooding in as brokerage account openings are growing rapidly.''

About 1.5 million new trading accounts were opened at China's brokerages in the week ended April 27, with a daily record of 311,110 having been set on April 24, according to the latest figures published on the Website of the China Securities Depository and Clearing Corp.

China's central bank Governor Zhou Xiaochuan on May 6 expressed concern that local shares are rising too fast.

``Yes,'' Zhou told reporters in Basel, Switzerland when asked if he's worried that an equity bubble may be building.

Citic Securities, the nation's biggest publicly-traded brokerage, gained 2.43 yuan (30 US cents), or 4.1 percent, to 61.49 yuan.

China Vanke, China's biggest publicly-traded real estate developer, jumped 1.81 yuan, or the 10 percent daily limit, to 19.89 yuan. COFCO Property (Group) Co, the publicly traded unit of the country's largest grain trader, rose 2.22 yuan, or the 10 percent daily limit, to 24.37 yuan. Poly Real Estate Group Co, China's third-largest developer by market value, surged 2.87 yuan, or 9.6 percent, to 32.81 yuan.

``Cash is flooding the stock market, there is a bubble building up,'' Lu said. ``At some point, it will burst and the last investors will suffer.''

Source:Shanghai Daily 
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