Chinese share prices up by 1.54 per cent
Chinese share prices chalked up a third consecutive record finish on Wednesday, adding 1.54 per cent on follow-through buying and continued strength in the yuan.business Updated: May 23, 2007 13:45 IST
Chinese share prices chalked up a third consecutive record finish on Wednesday, adding 1.54 per cent on follow-through buying and continued strength in the yuan, dealers said.
They said top level Sino-US talks in Washington were supporting the yuan on the view Beijing may make some further move to assuage US criticism that the Chinese currency is undervalued and gives China an unfair trade advantage.
A firmer yuan attracts fresh funds into the market and has helped investors discount the latest government measures aimed at slowing a booming economy and equity markets.
On Wednesday, the central bank set the yuan trading mid-point at a post-2005 revaluation record high of 7.6540 yuan to the dollar, up from Tuesday's finish of 7.6551.
On Friday, regulators attempted too slow the frenetic advance of the economy and share prices by raising interest rates and the amount of money banks must keep on reserve, aiming to drain liquidity.
The benchmark Shanghai Composite Index, which covers both A- and B-shares, closed up 63.33 points at 4,173.71 on turnover of 219.31 billion yuan (28.48 billion US dollars).
The Shanghai A-share Index was up 69.07 points or 1.60 per cent to 4,375.18 on turnover of 212.91 billion yuan and the Shenzhen A-share Index added 27.22 points or 2.17 per cent at 1,279.26, also a record, on turnover of 107.63 billion yuan.
First Published: May 23, 2007 13:42 IST