China shares hit new high: Steel the main winner

China's shares rose to a new record high for a second straight trading session Monday, driven by gains in steel and other metals companies, China Daily reported.

The benchmark Shanghai Composite Index rose 1.5% to a record 4628.11 while the Shenzhen Composite Index for China's smaller stock market also reached new heights, rising 2% to close at 1350.37. At the same time, the Renminbi rose to 7.56 to the dollar after the U.S. currency fell against the euro and the yen over the weekend.

Analysts say this bullish trend is likely to persist and even intensify as Chinese companies begin reporting first-half profits that are expected to show exponential results on the back of China's economic boom.

The Shanghai index is up more than 60% this year despite preventive measures by the government stem what Chinese officials have warned could be a speculative bubble.

Monday's main winners included steel companies after analysts said their rising profits were likely to exceed earlier expectations.

Wuhan Iron & Steel<600005> rose 8.1%, while Baoshan Iron & Steel<600019> gained 6.5% and Inner Mongolian Baotou Steel Union<600010> climbed 5.9%.

Other metals companies also rose. Aluminum Corp. of China rose the full daily limit of 10%, Western Mining<601168> jumped 7.8% and Anhui Tongdu Copper<000630> gained 7.9%.