Shanghai stocks hit 1-year high

China’s Shanghai Composite Index rose to a one-year high following a state media report the government was unlikely to lift its nine-month ban on new share sales soon, the Standard of Hong Kong reported. The Shanghai Composite Index, which covers yuan-denominated A-shares and foreign-currency B-shares, rose 0.6% to 1,306.59, its highest level since March 9. The Shenzhen Composite Index added 0.7% to 317.63. "A delay in the resumption of new share sales will soothe the concern of a capital outflow from existing equities," Haitong Securities analyst Zhang Qi said. The government suspended all domestic share issuance in June 2005 as part of a program to convert non-tradable state-held shares into tradable stock. About two-thirds of China’s stock market capitalization was held in nontradable shares when the reform program began last April.