The Shanghai Composite Index rose to above 5,000 points on Friday for the first time since the market crash of 2008, a newest landmark in China's long bull market.
"The ample liquidity available in the market as well as optimistic expectations for the reform have pushed the stock market to rise in the past months," Zhang Lei, chief operating officer at consultancy Beijing Fortune Cube Information Technology Co, told the Global Times on Friday.
The total trading volume in China's A-share market approached to 2 trillion yuan ($322.4 billion) on May 22, a global new turnover record in a single day. This reflects ample liquidity in the market.
Meanwhile, the market has been speculating this week that the central bank will soon inject fresh monetary stimulus of up to 1.5 trillion yuan.
"The central government has been vigorously promoting comprehensive reform and the stock market is certain to play a much more important role in providing direct funding to enterprises," Zhang said.
China's A-share market has witnessed continuous turbulence in the past two weeks. The Shanghai Composite Index significantly declined by 6.5 percent on May 28.
Zhang believes that despite lasting turbulence and repeated shocks, the Shanghai stock market will continue on its upward trend.
"Even if the anticipated earnings growth doesn't appear in listed companies' second-quarter financial statements, the trend of rising won't change," Zhang added.
The Shanghai Composite Index has risen by 55 percent this year, the highest by far globally, despite China's general economic slowdown. Meanwhile, the MSCI Asia Pacific Index, which reflects the overall condition of stock markets in the Asia pacific region, declined for the past four sessions and continued to fall on Friday.
China has surpassed the US to become the world's largest IPO market. New York-based financial data provider Dealogic said that Chinese enterprises have raised about $29 billion through IPOs in China's A and H share markets so far this year, $14 billion more than the amount raised in the US stock market over the same period. It is the first time in four years that China has had the lead at this point in the year.