Both China's Shanghai and Shenzhen stock markets opened higher on Monday morning, boosted by Fed's cut of interest rates and China Securities Regulatory Commission (CSRC) Chairman Shang Fulin's requirement that institutions to maintain stability.

Shanghai composite index opened at 3739.80 points on Monday morning and closed at 3761.01, gaining 67.90 points or 1.84 percent. Shenzhen Stock Exchange component index opened at 13673.59 points and closed at 13860.78, rising 355.89 points or 2.64 percent.

China A-share's average price-earnings ratio (PE) dropped substantially accompanied with the disclosure of 2007 public companies' annual reports. According to the Shanghai and Shenzhen Stock Exchanges' public information, the Shanghai stock market's PE fell to 28.32 times on May 5, and Shenzhen's fell to 33.6 times.

Internationally, the U.S. Standard & Poor's 500 Index's average PE is 17.4 times over the past 50 years, which reached 40 times at the highest, while the Tokyo motherboard market's average PE over the past 25 reached as much as more than 80 times.

China Investment