Chinese shares rebounded from Thursday's downturn, hitting a new
high on Friday, boosted by strong blue chips and USD-denominated
shares.
The benchmark Shanghai Composite Index, which tracks both
yuan-denominated A shares and hard-currency B shares closed at
4,179.78 points on Friday, up 28.65 points from the previous
close.
The smaller Shenzhen Component Index closed at 12,681.45 points,
up 166.30 points.
The two bourses recorded a smaller combined turnover of 337.747
billion yuan (US$43.9 billion) against Thursday's 389.397 billion
yuan (US$50.6 billion).
Securities firms led Friday's rebound. Property, energy,
electric power and defense enterprises were active with several
rising to the daily limit of 10 percent. Banks kept restoring
vitality.
The USD-denominated B-shares rebounded sharply by 8.75 percent
while the Special Treatment (ST) stocks declined drastically with
24 of them dropping to the daily limit of 10 percent.
This showed investors were becoming rational as they were
shifting from excessive speculation to moderate investment, said an
analyst with Guangfa Securities.
Analysts with Beijing Shoufang Investment Consulting expected
the market to remain bullish despite a smaller turnover.
Huiyang Investment warned risks for new shareholders and
suggested investors buy banks shares which had been affected by the
yuan appreciation.
On Friday, the Hushen 300 Index reflecting the whole fluctuation
of China's Shanghai and Shenzhen stock exchanges closed at 3,985.25
points, up 65.50 points from the previous close.
(Xinhua News Agency May 26, 2007)