China's stocks staged a long-awaited rebound last week with all the major indices in the country's two bourses soaring dramatically after the government abandoned a plan on June 23 to sell off State holdings in listed firms.

Last Friday, Shanghai's composite index closed at 1,732.755, up 170.33 points compared to the previous Friday's index, while Shenzhen's sub-index ended at 3,551.33, up 370.39 from the previous Friday.

"Market sentiment is still strong due to the government's determination to prop up the stock markets," said analyst Dai Yizhong of Guotai J&A Securities.
"Share indices will resume an upward trend soon, though there will be some volatility due to profit-taking," he said.

Last Monday, A-share turnover in the two bourses totaled to nearly 80 billion Yuan (US$9.64 billion), the highest this year.

Turnover of B shares, open to foreign and Chinese investors, soared to US$301.856 million - levels not seen since last September.

Market-boosting steps last week also included tighter controls for listed firms to issue additional shares.
"The abolition of the State's share selldown plan has banished stock investment risks involving a flood of new shares," said analyst Xi Weidong at Jinxin Securities.

The official support came after the stock markets had lost more than 30 per cent of their value over the past year.

But they also said it was unlikely the composite index would recover soon to its peak of 2,245.435 set on June 14 last year, partly due to a crackdown on market corruption.

Therefore, in China bearing industry line, the bearing shares are facing a new stage, one aspect, China bearing line is not as competitive as many foreign bearing companies; the other aspect, the newly issued accounting regulation could somewhat reduce the profit of this year. (Adopted from CHINA DAILY)