BEIJING, May 16 -- The Shanghai stock exchange saw prices jump to their
highest level in more than two years yesterday, as the yuan hit a new high
against the US dollar and metal rallied on the global futures market.
The Shanghai Composite Index, which groups both yuan-dominated A shares and
foreign-currency B shares, surged 3.82 percent to 1,664.09 with a trading volume
of 53.29 billion yuan (US$66.6 billion).
That was the highest single day of trading in history, breaking the
previous record set on June 24, 2002 when the index soared 9.25 percent to
1,707.31 with a trading volume of 51.75 billion yuan.
The A share index climbed 3.85 percent to 1,747.44 and B share index gained
2 percent to close at 101.41.
"The stock market is hot with the appreciation of the yuan," said Wu
Jianxiong, an analyst at Guotai Jun'an Securities Co.
The Chinese currency yesterday topped 8 yuan to the dollar for the first
time since July's revaluation.
The appreciation led to a buying frenzy for property developers including
Shanghai Wai Gaoqiao Free Trade Zone Development Co Ltd and retailers such as
Dashang Group Co Ltd.
"Besides, the bullish performance of commodity futures spurred the metal
counter," Wu said.
The non-ferrous metal sector surged 9.45 percent yesterday as investors
snapped up popular manufacturers such as Henan Zhongfu Industry Co Ltd.
Henan closed among the top gainers, surging 10.07 percent to 8.31 yuan. The
Henan-based company has gained 70 percent since last Monday.
It was joined by Inner Mongolia Baotou Steel Rare-Earth High-Tech Co Ltd
which soared 10.06 percent to 8.64 yuan, Henan Yuguang Gold & Lead Co Ltd
gained 10.04 percent to 8.55 yuan, and Jilin Ji En Nickel Industry Co Ltd which
was up 10.02 percent to 21.52 yuan.
(Source: Shanghai Daily)
