By Dong Zhixin (chinadaily.com.cn)
Updated: 2007-09-06 17:11

China's major stock index surge to an all-time high on Thursday as regulators hinted the country's first stock index futures will be launched at a proper time.

The benchmark Shanghai Composite Index rose 1.56 percent to close at 5,393.66 points after hitting an intra-day high of 5,412.32. The close marked an increase of more than 100 percent since December 2006.

The Shenzhen Composite Index gained 0.68 percent to 1,486.17. The CSI 300 Index, a target of the upcoming stock index futures, went up 0.91 percent to 5,412.03, marking a growth of more than 165 percent so far this year.

The rally came after China Securities Regulatory Commission Chairman Shang Fulin said technical and system preparations for the stock index futures are completed and trading will begin "when conditions are ripe". He did not give a specific time frame.

Investors snapped financial and steel shares, which have a heavy weighting in both the CSI 300 index and Shanghai Composite Index. Institutions holding such stocks will help them influence trade in futures, analysts said.

Bank of China rose 3.06 percent to close at 6.39 yuan per share, followed by a 2.21 percent increase in the shares of the Industrial and Commercial Bank of China to 6.95 yuan. Huaxia Bank jumped its 10 percent daily limit to 21.21 yuan.

In the steel sector, Baosteel went up 2.35 percent to 19.57 yuan after news that it might eventually buy its parent's stake in a joint venture with Handan Iron and Steel Group. Tangshan Iron and Steel Co. increased 4.57 percent to 24.03 yuan.

Sinopec also pushed up the market, rising 2.05 percent to 17.46 yuan, and China Unicom gained 6.22 percent to 8.88 yuan amid mounting speculation that China will restructure the telecom industry.

Pressure for a major correction is increasing as the market is at all-time high, according to analysts, who are also holding faith in the long-term trend.