China's stocks nearly re-challenged the 4,000-point psychological barrier on Friday, with the benchmark Shanghai Composite Index up 1.97 percent from the previous close to end the morning session at 3,989.93 points.

The key index, which covers both yuan-denominated A-shares and foreign-currency-denominated B-shares on the Shanghai Stock Exchange rose 76.99 points from Thursday's close.

Market observers said the upward movement was led by financial section in an optimistic mood caused by upbeat interim earnings.

They added the markets ignored expectations of government tightening policies against overly fast growth of the Chinese national economy.

On Thursday,the National Bureau of Statistics released China's key economic indicators, of which GDP growth reached 11.9 percent, a record high since 1994.

The Shenzhen Component Index on the smaller Shenzhen Stock Exchange soared 407.04 points, or 3.2 percent, to close the morning session at 13,197.98.

(Xinhua News Agency July 20 2007)