Editorial Summary

The Shanghai Composite Index rose 2.06 percent to close at 5,043.5 on Thursday, while the Shenzhen Composite Index climbed 1.37 percent to close at 1,357.4. Trading volume on the Shanghai and Shenzhen Stock Exchanges reached 87.8 billion Yuan and 40.8 billion Yuan, respectively.

Shares of China Railway Group Limited (601390.SH) soared 10.04 percent to close at 9.97 Yuan per share on the Shanghai Stock Exchange on Thursday, after company chairman Shi Dahua denied recent speculation about problems with China Railway's recently reported profits, reports 21st Century Business Herald. Shi said the misunderstanding of the company's reported profit was caused by new calculation methods introduced as a result of new accounting standards. According to Shi, China Railway is held to more strict accounting standards because it is a state-owned company and that details of the company's accounting have been recorded with the State-owned Assets Supervision and Administration Commission of the State Council and Ministry of Finance (MOF).