Chinese main stock index hit an all-time high on Thursday, bringing its rise this year to 94 percent and underlining the spectacular success of the government's drive to revive the market after a four-year slump.
The Shanghai Composite Index closed up 1.15 percent at a record high of 2,249.110 points, passing its previous intra-day high of 2,245.435 on June 14, 2001. Turnover in Shanghai A-shares was a heavy 36.88 billion yuan ($4.7 billion).
Many traders and analysts, as well as ordinary Chinese, said the massive sums of new money flooding the market meant there was no clear sign the bull run would end in the short term.
"Liquidity is so strong - the amount of money raised by mutual funds is crazy," said Ke Shifeng, director at fund manager MC China. "What are they going to do with the money? They're going to buy big-cap stocks," said Ke, whose venture is an affiliate of Martin Currie, a top foreign investor in China's stock market with about $1 billion. Individual investors, from office and factory workers to retirees and students, flocked to the trading halls of brokerages in Shanghai and around the country as the record was broken.
The index slumped by more than 50 percent in the four years after June 2001 as a speculative bubble burst. But creating a healthy equity market to support China's growth became a key policy goal of the government this year.
Shanghai, the world's best performing major stock market this year, has become more expensive than many global markets - Hong Kong's Hang Seng Index is at about 15 times historic earnings, and Hong Kong-listed Chinese shares are at 17.
ICBC slipped 0.47 percent to 4.27 yuan. Among top gainers were auto makers, with Dongfeng Auto surging 9.87 percent to 3.34 yuan. Consumer stocks were also strong with Xinjiang Yilite Industry, a wine producer, up its daily 10 percent limit at 5.36 yuan.
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