Chinese Mainland Stocks Hit New Highs Again Despite Rampant Profit Taking
Tang Shihua
/SOURCE : yicai

(Yicai Global) Feb. 26 -- The Chinese mainland's core stock indexes hit new multi-month highs in morning trading, even as short-term investors cashed in on the recent market explosion.

The Shanghai Composite Index went into the lunch break 0.42 percent higher at 2,973.71 -- a new high since last June, while the Shenzhen Component Index hit the mid-way point up 0.22 percent at 9,154.23, a more than six-month peak. Smallcap tech firms continue to lead the charge as the ChiNext Price Index, which tracks growth enterprises in Shenzhen, leaped 1.17 percent to close at 1,554.26, its highest level since August.

All three indexes were haphazard throughout the early session, oscillating above and below yesterday's closing levels as bullish buyers and profit takers digested the latest goings on in the macro economy and market development. Trading volume was on track with yesterday's multi-year high of more than CNY1 trillion (USD149 billion), reaching CNY674.6 billion at the half-day mark today.

Chinese stock markets have been on a tear since resuming trading on Feb. 11 after the week-long Chinese New Year holiday, with the cumulative rise of each of the indexes between 14.3 percent and 20.9 percent as of yesterday's close. The three main indexes gained over 5 percent each yesterday after news from both China and the United States suggested the world's two largest economies could be drawing closer an end of their ongoing trade dispute.

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Keywords: Stock Market , Shanghai Composite Index , Shenzhen Component Index , ChiNext Price Index