Optimism over market trend

SHANGHAI'S key stock index may fluctuate in the short term but is expected to climb over the middle term, analysts said.

"It is normal for the index to fluctuate as it has remained above 2,500 points for quite a long time," said Qian Qimin, an analyst with Shenyin and Wanguo Securities. But he is confident that "institutional investors will also increase their investment in the market as China's economic statistics for the first quarter showed signs of economic recovery."

The Shanghai Composite Index rose a cumulative 2.44 percent last week to close at 2,503.94 points.

"The high level of turnover last week suggested the market is currently optimistic about the economic situation," according to a note by Galaxy Securities. "The index may stay between 2,500 and 2,550 points in the near future."

China's securities regulator last Friday said it would establish an independent committee of 35 members to approve listings for the Growth Enterprise Market, set to launch next month.

Those which are qualified to list will be able to set a good example to other small and medium-sized enterprises, said Yao Gang, vice chairman of the regulator.