By Li Zengxin (www.ming7.cn)
Updated: 2007-08-09 16:34

Chinese stocks shrugged off tightening warnings by the central bank and formed a strong upward trend today, with both major indices closing at record highs.

Today, the majority of Chinese stocks resumed strong growth and reversed yesterday's sluggish performance, which was pushed up by a single heavyweight blue chip. The pending July consumer price index (CPI) is estimated to grow a record 5 percent according to investment banks including Goldman Sachs, Credit Suisse, and Shenyin Wanguo Securities.

Total turnover of the stocks enclosed by the major indices was 208.5 billion yuan, the lowest this month.

Shanghai Composite Index
Source: www.sina.com.cn

Unlike yesterday's sluggish performance, saved from a slump by a single heavyweight blue chip, today the benchmark Shanghai Composite Index began marching upward immediately after opening lower from 4,658.59 and left the starting point behind as the lowest of the day. It hit the highest 4,768.89 soon after trading resumed in the afternoon session. After that, and following a few adjustments, the index finally ended at 4,754.10, up 90.93 points or 1.95 percent from yesterday's closing.

Of the A shares listed in Shanghai, 447 went up today, while 278 closed down and 77 finished flat. Jiangxi Xinxin Industrial, rising 10.08 percent to 7.1 yuan, topped of the gainer's list, leading another 16 stocks that sealed the 10 percent maximum growth cap and 10 rising nearly 10 percent. Shanghai Kaikai Industrial, however, dropped another 9.99 percent to make the bottom of the list today.

The Industrial and Commercial Bank of China, the largest trader both in terms of trading volume and transaction value and the only force that saved the index from losing 50 points yesterday, slowed today as analysts expected. It ended up 0.17 yuan or 2.67 percent by the closing.

Shenzhen Component Index
Source: www.sina.com.cn

The Shenzhen Component Index, tracking the smaller Shenzhen Stock Exchange, mapped out a similar pattern. It opened higher from 16,194.04 and closed at 16,680.38, 486.65 points or 3.01 percent higher than the previous closing, also a new record-high close. The index went through the day between its opening point and a high of 16,691.87.

Of the A shares, 341 went up, 202 closed down, and 79 ended unchanged. China Tungsten and High-Tech Materials grew 10.02 percent as the top gainer while Suzhou Good-Ark Electronics lost 10 percent on the other end of the league. The largest trader China Vanke rocketed 9.51 percent to 35.34 yuan.

Stocks in the real estate, paper, and metal industries led the surge. Chongqing Yukaifa gained nearly 10 percent to pioneer the real estate shares on the rise. Wholesale and retail sectors were also strong. Closed-end mutual funds were up, with both indices surging over 1 percent. Of the 109 listed B-shares, 61 closed higher and 11 remained unchanged today.

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