Shanghai Composite Index hits record high
15 December 2006
The Shanghai Composite Index reached a new high on Thursday as A and B shares gained 1.15% to reach 2,249.11, the South China Morning Post reported. This broke the previous high of 2,242.423 set on June 13, 2001. The market has risen more than 90% so far this year and analysts expect this bull run to continue well into the new year. Previous bull runs did not last as long, undermined by government interference, poor quality companies, a lack of transparency, massive speculation and illegal activity. But government-led reforms, notably the non-tradable state-owned share reform program, are thought to have helped the market turn a corner.