Shanghai Composite Index Hits 2097 Points This WeekThe Shanghai composite index advanced 27.51 points or 1.3 percent on Friday to 2,090.18 points from last week's 2,062.67 points.The turnover this week was 65.27 billion yuan (US$7.8638 billion), which was 11.98 percent less than that of last week's 74.15 billion yuan (US$9.09 billion), according to Homeway, China's leading on-line financial and securities company. This is the sixth week that the Shanghai A-share composite index reached a new record and the index rose 53 percent up to now this year. Like the past few weeks, the Shanghai Composite Index continued to rewrite the new high almost every day and touched the highest level of 2,097.32 points on Friday. The market bullish trend moved reposefully, but its turnover shrank. Another feature in the upward trend is that the index always jumped after the market opened and continued to move upwards most of the trading time, and then ended just below the day's peak. Hence, the index could touch a new high easily next day. Moreover, the mid-priced restructured shares became the market leaders and at the end of this week the old market benchmarks, Sichuan Changhong and Pudong Development Bank performed actively. In the IPO market, only one new A share made its debut on Friday. There was no new A share issue on the Shanghai market this week. Foreign companies would be approved to list on the China's stock market, which may influence the market expansion. Although on average interim results were unsatisfactory, the poorly-reported companies still performed actively. Usually the loss-making companies would release their results at the end of the releasing period, more interim risks will exposed in the coming days. As in the historical high level, investors became much more concerned. However, the Shanghai Composite Index may move to 2,100 points next week, bolstered by the sound economic developments and favorable government policies towards the stock markets. |
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