Shanghai stock index surges past 4.000 Staff and agencies 13 May, 2007 Wed May 9, 10:03 AM ET SHANGHAI, China - Shanghaiâs stock index burst through the psychologically important 4,000 point mark on Wednesday as investors shrugged off official warnings of a possible market bubble amid soaring corporate profits. Chinese shares have surged this week despite the central bank governorâs expression of anxiety Sunday that they might be headed for a bubble. In late February, the market tumbled nearly 9 percent, causing a sell-off in global markets. But less than a month later, the market had recovered all its losses and has been storming higher ever since. "Given that the liquidityâs there, the momentumâs there, the profit news is there, youâre looking at 5,000 within a month or two," said Stephen Green, a Standard Chartered Bank economist. However, he added a government intervention could block that rise. A growing number of Chinese, meanwhile, are pulling their money out of saving accounts and sinking it into the stock market. Investors opened 4.79 million new A-share accounts in April, compared with 3.08 million for the whole of 2006, the state-run Shanghai Securities News reported Wednesday. Financial analysts have warned that the market could be due for a drop in prices, and said the pullback at midday on Wednesday might reflect increased investor caution. Investors may also be buying large-capitalization stocks ahead of the launch of Chinaâs first stock index futures for arbitrage purposes, analysts said. Baoshan Iron & Steel rose 4.7 percent to 11.98 yuan and China Yangtze Power gained 2.9 percent to 15.04 yuan.