China's benchmark stock index almost broke another milestone coming within two points of the 3,400 barrier on Monday, with metal, textile and pharmaceutical shares leading the way.

The Shanghai Composite Index rose 75.36 points, or 2.27 percent, from the previous day to end Monday trading at a new record high of 3,398.95 points.

The Component Index on the Shenzhen Stock Exchange closed at 9,475.71 points, up 2.24 percent. It gained 207.48 points on a transaction volume of 75.976 billion yuan (9.5 billion U.S. dollars).

The combined turnover for the two bourses was 217.48 billion yuan (27.2 billion U.S.dollars), while Friday's turnover was 191.465 billion yuan (24.9 billion U.S. dollars).

The upward trend will continue over the short term as investors are upbeat following the release of annual reports issued by about half the listed companies showing overall juicy profits, said the analysts with Shenyin Wanguo Securities.

By April 5, 733 Chinese listed companies had issued annual reports showing combined net profits of 235.7 billion yuan (29.5 billion U.S. dollars) in 2006. The total net profits of these companies were almost equal to the reported profits of all 1,400 listed companies in 2005.

On the Shanghai A-share market, there were 615 gainers and 164 losers, with 59 shares remaining largely unchanged. The Shenzhen A-share market recorded 396 gainers and 131 losers, with 74 stocks unchanged.

Star Lake Bioscience rose to the 10 percent daily limit to close at 6.45 yuan. Nanjing Iron Steel also rose to the 10 percent limit to finish at 9.66 yuan. China Hi-tech Group closed at 8.45 yuan after also increasing by the 10 percent daily limit.

The Hushen 300 Index, which tracks companies on the Shanghai and Shenzhen stock exchanges, closed at 3,038.17 points, up 66.16 points, or 2.23 percent, from the previous close.

Source: Xinhua