By Ding Qi (chinadaily.com.cn)
Updated: 2007-07-27 17:12

Shares of energy, agriculture, and environmental protection sectors performed well. Feida Environmental Science surged over six percent to 20.67 yuan. Meanwhile the heavy weight banking sector declined mildly in response to the possible tightening measures on financial institutions. China Merchants Bank, one of the nation's leading lenders, dropped 2.16 percent to 29.02 yuan from yesterday's highest 30.37 yuan per share.

In contrast, Hong Kong stock markets failed to shake off negative impacts from overseas markets. The benchmark Hang Seng Index lost 2.76 percent on Friday and closed at 22570.41.

Analysts said the robust mainland indices are great reflection of investors' confidence in the Chinese economy. Although some people used to be worried about the short term trend during the correction of the past month, few had ever doubted the nation's economic future. When negative factors or prospects are smashed or fully absorbed by the market, positive ones like sound corporate earnings and appreciation of renminbi began to take greater effect and drew the indices to a record high.

This optimism comes not only from Chinese investors. Fund manager and investment author Jim Rogers surprised people on Thursday by saying that China's bullish stock market might last 80 years. Although an exaggeration, the words drew international attention to the Shanghai and Shenzhen markets.

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