The composite index of Shanghai and Shenzhen Stock Exchange went up 1.57 percent and 1.87 percent during the first week since the central bank raised the benchmark interest rate, usually sparking fear of insufficient capital available for stock market players.

On Aug. 18, the central bank hiked the one-year benchmark interest rate 0.27 of a percentage point. The news brought down the Shanghai composite index by 1.68 percent to open at 1,565.457 points last Monday.

After a day of fluctuations, however, the composite index bounced back to close at 1,601.15 points on Monday, up 3.13 points.

During the week, the total turnover in the Shanghai and Shenzhen Stock Exchange reached 72.2 billion yuan and 44.2 billion yuan, both higher than the previous week.

The share price of heavyweighted China Merchants Bank Co. Ltd.(SH 600036) hit a new high in the week after it released the rough issuance price for its IPO in Hong Kong market, which was much higher than expected.

Shares in non-ferrous metal, space industry and property also performed well during the week.

The Composite Stock Index on the Shanghai Stock Exchange closed at 1,623.03 points on Friday.

Interest rates now stand a 2.52 percent on one-year deposits and 6.12 percent on the one-year loan rate, as set by the People's Bank of China (PBOC), or the central bank.

The central bank raised the loan rates by the same margin in late April but did not change the deposit rates.

Source: Xinhua