The Shanghai and Shenzhen stock markets reached new historical highs on Monday as the bull run in China showed no signs of easing. The Shanghai Composite Index closed up 3.35 per cent to 4,813.80 on Monday, a fresh seven-year high, while the Shenzhen Composite Index hit a record high when it closed up 1.61 per cent at 2,785.07, after falling in morning trade. The turnover in the Shanghai stock market hit a new record of 1.079 trillion yuan, a massive jump from the daily turnover of roughly 20 billion yuan in its last bull run in 2006. The total value traded in the Shenzhen stock market also hit a record of 953.7 billion yuan. “The mainland market is now at levels not seen since the US credit crunch (in 2008) and the momentum in the market seems to remain rather strong,” said Gerry Alfonso, a director of Shenwan Hongyuan Securities. “We saw the continuation of the recent trend with the market rallying and the vast majority of sectors having a gain. The rally was very broad with many sectors gaining more than 2.5 per cent compared to Friday’s closing level,” said Alfonso. “Local investors, particularly retail investors, continue to be rather bullish on their outlook. These investors are likely not looking at valuations when taking investment decisions,” Alfonso added. Mainland China bourses are dominated by local retail investors. The reason the Shenzhen Composite Index did not rise as much as the Shanghai Composite Index is the IT sector – which is heavily represented in the Shenzhen stock market – underperformed, Alfonso said. It was a technical correction because IT stocks have been soaring for most of last week, he added.