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China's main stock index rose 1.19 percent to set a record high yesterday, as many blue chips remained in demand.

The Shanghai Composite Index closed at 3,291.30 points. Gainers outnumbered losers by 586 to 182.

Turnover in Shanghai A shares was heavy at 107.14 billion yuan yesterday, against 93.3 billion yuan on Monday.

Many analysts warned that after the sharp gains of the past few days, the market might lose steam in the short term. The index has risen about 14 percent since early March.

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