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Shanghai Stock Index Surpassing 2000 Benchmark
China's benchmark Shanghai composite index made a history on July 19, exceeding the very much expected 2000 points when the market opened at 9:30 Beijing Time (1:30 GMT).
More than 500 investors at a Xiangcang Securities booth nearing chinadaily.com.cn office in north Beijing cheered the new record, with many applauding the landmark. The Shanghai index opened at 2000.33, and the Shenzhen composite index opened at 4820.06.
Chinese stock analysts predict the index could climb to new highs, bolstered by China's promising economic strength, and its anticipated entry into World Trade Organization later in the year.
Economists estimate China's economy has bid final farewell to the side-effects of the 1997 Asian economic crisis, and is entering a new boom period, with some predicting its annual GDP to growth by 8-10 per cent in the coming 8-10 years.
China said on Tuesday its economy grew by 8.2 percent in the first six months of the year and will grow by 8.3 percent in the second half due to a recovery in exports and consumption.
From January to June, gross domestic product (GDP) reached 3.9 trillion yuan (US$475.7 billion), up 8.2 percent from the same period last year, China's National Bureau of Statistics spokesman Ye Zhen told a news conference in Beijing.
Ye said the government expects GDP will grow by 8.3 percent in the second half of the year and that the growth rate for the entire year will top 8.2 percent -- compared to growth of 7.1 percent in 1999.
"The good momentum will still be kept in the second half of this year," Ye said.
Exports will continue to grow, consumer spending is showing a rebound and the government's economic stimulus policies are showing their affect, he said.
In the six months through June, exports increased by 38.3 percent year-on-year to 114.5 billion dollars, compared with a 4.7 percent decline in the first six months of 1999.
Imports grew by 36.2 percent to 102.1 billion dollars, allowing China to enjoy a trade surplus of 12.4 billion dollars, 4.4 billion dollars more than the same period last year, Ye said.
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