An investor yesterday gives a high five in front of an electronic board in Yangzhou, Jiangsu Province. He had good reason to celebrate. China's benchmark index the same day eclipsed the 5,000-point level for the first time. The Shanghai Composite Index, which tracks yuan-denominated A shares and hardcurrency B shares, advanced 1.05 percent to close at 5,032.49. The spectacular bull run has seen the index more than quadruple since the start of last year. -Shanghai Daily

Shanghai's benchmark stock index passed the 5,000 mark for the first time yesterday, driven by real estate and big-cap financial companies.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard currency B shares, advanced 1.05 percent to close at 5,032.49 after soaring as high as 5,050.38 in intraday trading.

The index rose for a fourth straight day as gainers outnumbered decliners by 511 to 299.

Total turnover amounted to 154.9 billion yuan (US$20.5 billion), down from 163.8 billion the day before.

Most analysts forecast the index will remain solid as overall market sentiment remains bullish amid abundant liquidity.

"Investors are optimistic at the long-term prospects because of China's sustained economic development and robust corporate profits," said Xia Ruipeng, an analyst at Oriental Securities Co Ltd.

It took Shanghai's stock index nearly seven years to rise from 2,000 points to 3,000 points, a mark it finally reached in February.

But the index needed only another six months to hit 5,000 despite repeated steps by the central government to prevent the market from overheating.

Despite the optimism, some analysts warned of a possible correction next week.

"Risks are mounting as blue chips are overvalued," said Wang Shen, an analyst at Haitong Securities Co Ltd.

Real estate issues rose yesterday as bargain hunters poured in investment after several days of flat trading.

Shares of Poly Real Estate Group Co, China's largest state-held listed developer, soared 7.67 percent to 83.20 yuan. Shanghai Shimao Co added 3.31 percent to 31.87 yuan.

The market was also boosted by the big financial companies, followed by sectors such as petroleum and coal.

Citic Securities Co, China's biggest listed broker, jumped 5.91 percent to 94.95 yuan after saying it will issue up to 350 million shares to raise as much as 25 billion yuan for acquisitions and business expansion.

Haitong Securities, the second-largest public brokerage house, expanded 0.78 percent to 53.93 yuan. The Industrial & Commercial Bank of China, the nation's top lender, edged up 0.43 percent to 6.95 yuan.

Qingdao Haier Co, one of China's leading home-appliance producers, jumped 9.07 percent to 22.90 yuan while China Yangtze Power Co, operator of the world's biggest hydropower project, rose 0.83 percent at 19.37 yuan.

Bucking the trend, China Citic Bank Co eased 1.32 percent to 11.20 yuan.