SHANGHAI (Reuters) – China’s main stock index climbed for the first time above the 5,000-point level on Thursday, passing another milestone in a spectacular bull run that has more than quadrupled the index since the start of last year, and doubled this year (see chart above, click to enlarge).
The rise was greeted with euphoria by Chinese investors, millions of whom have flooded into the stock market for the first time this year in one of history’s fastest shifts of money into equities.
From the Wall Street Journal’s report:
China’s benchmark Shanghai Composite Index topped 5000 points for the first time Thursday, the latest sign of unwavering confidence in stocks by the investing public of the world’s most populous nation.
Within minutes of the start of trading in China, the Shanghai Composite Index was quoted at 5025, up 0.9%. The 5000 level marks a nearly quadrupling since the index bottomed at an eight-year low of 1011.50 in July 2005.
Only last November, the Shanghai index pulled above 2000 for the first time, followed by 3000 in March and 4000 in May.