The prices on China's stock markets continued to rise on Monday as the raise in benchmark one-year interest rates failed to lure deposits back into bank accounts because the inflation-adjusted interest rates for deposits remain minus.
The benchmark Shanghai Composite Index on the Shanghai Stock Exchange jumped 2.56 percent or 101.01 points to close at 4,162.86 points in the morning session, the highest morning session closing in less than a month.
The Shenzhen Component Index on the country's smaller Shenzhen Stock Exchange gained 3.92 percent, or 526.45 points, to 13,944.42.
The morning session has registered 885 gains on the Renminbi-denominated A-share markets, with more than 40 hitting or approaching the daily maximum rise of ten percent. Only 19 stocks fell.
The market was advanced by steel and iron stocks which analysts say have been seriously undervalued.
Chen Li, analyst with the Shenyin Wanguo Securities Analyst, said that the interim earnings prospect of listed firms against the backdrop of booming economy also helped the recovery of investors confidence.
(Xinhua News Agency July 23 2007)
