The index that tracks mainland China’s largest bourse surpassed 5,000 for the first time Thursday as it reacted to the worldwide market rebound and shrugged off government efforts to cool off the economy. The Shanghai Composite Index rose 1.05 per cent to 5,032.49 although the central bank raised interest rates Wednesday for the fourth time this year to fight growing inflation and shrink the money flowing into the stock markets.
The government also lifted restrictions on Chinese investing in the Hong Kong market, which could see money drain from the mainland markets. Shanghai’s sister exchange in Shenzhen saw a similar increase Thursday, rising 1.2 per cent to 1,415.18. [Full Text]