The value of shares traded on China’s stock markets on Wednesday exceeded share-trading value in the rest of Asia combined — including Japan — helping the benchmark index to breach the 4,000 mark for the first time. The Shanghai stock exchange recorded Rmb255.3bn ($33.2bn) in turnover on Wednesday, while the smaller Shenzhen exchange notched up Rmb121.6bn ($15.8bn), bringing the combined total for mainland China to Rmb376.9bn ($49bn) — 21 per cent higher than the previous record at the end of April. The figure was all the more striking given that day trading is not allowed in China. After such a sustained bull run, notes the FT, “even the most sober-minded are saying the market can continue to rise in spite of prices that are more than 50 times earnings” — well, all, perhaps, apart from the increasingly alarmed Chinese officials who keep warning of potential asset bubbles.

This entry was posted by Gwen Robinson on Thursday, May 10th, 2007 at 5:51 and is filed under Capital markets. Tagged with china. Edit this entry.