Chinese share prices hit new high on Thursday, as major index closed above the 5,000-point mark since China established stock market 18 years ago.

The benchmark Shanghai Composite Index went up 1.05 percent to conclude at 5,032.49 points. The index broke through 5,000-point mark for the first time in morning trade, and hit an all-time intraday high of 5,050.38 points.

After jumping about 130 percent in 2006, the index has surged around 85 percent so far this year despite four rate hikes and a slew of other measures to cool the market.

China's stock market entered a five-year bearish round in 2001, due to poor performance of listed companies, irregularities of securities firms and problems with the market system design. The major index fell to 998 points on June 6, 2005.

At present, the market value of the two bourses, with more than 100 million accounts so far, has exceeded China's gross domestic product and reached 22 trillion yuan.

"The market is more healthy and more energetic now than it was at 1000 points, " said Chinese economist Han Zhiguo, noting that the market had transformed from a "policy market" to a real market and begun to reflect China's soaring economy.

On Thursday, the Shenzhen Component Index on the smaller Shenzhen stock market rose 1.77 percent or 307.23 points to close at 17,639.22 points.

The combined turnover of the two bourses shrank to 244.8 billion yuan from 261.8 billion yuan on Wednesday with 870 gainers and 655 losers.

Among the gainers, Shanghai Industry Development hit the 10 percent daily upside limit at 40.78 yuan per share. Zhongshan Public Utilities Science & Technology also jumped 10 percent to 11.98 yuan.

The Industrial and Commercial Bank of China, the country's largest lender, rose 0.43 percent to close at 6.95 yuan. The bank reported a 61.4-percent increase in after-tax profits in the first half of the year.

(Xinhua News Agency August 24 2007)