Inspiring performance in the coal sector and the absence of negative news over the weekend drove major stock indexes well above the 5,300-point level on Monday despite the bourse's warnings against excessive speculations.

The benchmark Shanghai Composite Index opened at 5257.78 points, nearly 40 points higher than last weekend's close. It wasn't long before the index conquered another landmark, 5,300 points, around 10 am. After touching a new all-time high of 5,327.54 after the noon break, the index lingered a bit lower absorbing huge encashment pressure after the surge. It wrapped up Monday's trading at 5,321.06 points, 1.96 percent higher than last Friday's close. Market turnover rose to 191 billion yuan (US$25.3 billion).

The Shenzhen Component Index, covering major stocks listed in the smaller Shenzhen market, gained 1.63 percent to close at 18,164.04 points with a turnover of 107 billion yuan. It also claimed a record high in the middle of trading.

Doubtlessly, the coal sector led today's gain admiring half-year profit reports and enlarged productivity. As a convincing proof, China's top economic planning agency announced yesterday the nation's coal production jumped 11.7 percent year-on-year to 1.278 billion tons in the first seven months of 2007. Almost all stocks in the sector attained notable gains of over nine percent today, while share prices of Shanxi Coking and Hengyuan Coal Industry and Electricity Power both reached the upper limit of ten percent.

Shares of China Eastern Airlines, the nation's third largest carrier, resumed trading today after announcing a deal to sell a combined 24 percent stake to Singapore Airlines and Temasek Holdings, the Singaporean government's investment arm. Its share price decisively clinched the upper limit of 10 percent for one day.

After a month-long correction, China State Shipbuilding Co Ltd, the most expensive stock in the domestic securities market, sailed back to the 200-yuan field due to rosy industry predictions. The stock closed at 205.59 yuan, its maximum rise for one day.

In addition, shares in the steel making and public utility sectors contributed generously to today's success. Shares of the Xinjiang based Bayi Iron & Steel increased by 10 percent to close at 14.42 yuan, while Changchun Gas Co Ltd, a municipal gas supplier in Jilin Province, also impressed investors with a seven percent growth.

To prevent excessive speculations in the volatile market, the Shenzhen Stock Exchange recently established a risk management committee and issued guidelines for managing transactions calling on entrusted dealers to refuse or suspend liabilities to clients who use securities accounts illegally or pursue illegal transactions. Dealers are also responsible for educating investors, and warning them about various investment risks, according to the bourse.

Now it's up to Chinese stock investors to decide whether to share the growth or to risk their positions in sheer stock speculations. At the historic height of the market, a sober mind and more cautiousness seem to be indispensable to all.