An investor smiles before an electronic board showing stock information at a securities firm in Xiamen, East China's Fujian Province March 20, 2007. [newsphoto] Photo Gallery>>>

    BEIJING, March 21 (Xinhua) -- 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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China's shares prices close higher despite interest rate hike

    BEIJING, March 19 (Xinhua) -- China's stock markets remained unaffected by the central bank's latest interest rate hike on Monday, with the benchmark Shanghai Composite Index closing higher.

    The index, which covers both A and B shares, closed at 3,014.44 points, up 83.96.

    The Shanghai A-share Index was up 88.63 points at 3,167.72 and the Shenzhen A-share Index was up 10.03 points at 818.80.

China raises benchmark interest rates by 0.27 percentage points

    BEIJING, March 17 (Xinhua) -- China's central bank announced on Saturday that the one-year benchmark interest rates are raised by 0.27 percentage points as of March 18.

    The one-year rate for deposits is increased to 2.79 percent and that for loans to 6.39 percent, according to the People's Bank of China, or the central bank.

    This is the first interest rate rise in 2007 after the central bank had raised commercial banks' deposit reserve ratio by 0.5 percentage points twice earlier this year to rein in excessive bank lending.