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China B shares edge down, A shares touch records

SHANGHAI: China's B shares closed slightly lower in thin trade on Monday as investors kept to the sidelines after official measures to boost the hard currency market failed to materialise yet again, brokers said.

The Shanghai B share index edged down 0.44 percent to 42.184 points as turnover fell sharply to $3.39 million.

Shenzhen's B index inched down 0.28 percent to 91.89 points as turnover plunged to HK$39.13 million.

The indices have risen sharply in the past few weeks on rumours the government would take steps to boost B share trading, including the possibility of mutual funds devoted to B share investment. No official announcements have been made so far.

"Investors kept on the sidelines today as several weeks have passed without any signs the central government will announce the rumoured measures," said an Everbright Securities broker.

Brokers said the B share indices were likely to consolidate in the near term as investors grow more impatient over official action. China's domestic A share indices touched record highs for the second straight session after a series of official steps to boost domestic stock trading this year, including allowing brokerages to obtain bank loans using securities as collateral.

Shenzhen's A share index closed up 0.68 percent at 613.95 points after hitting a record high of 614.78 points in afternoon trade. Turnover fell slightly to 17.81 billion yuan.

Shanghai's A index rose 0.34 percent to 1,943.190 points after hitting a record high of 1,949.340 points. Turnover edged up to 16.16 billion yuan.

Official media said strong performances by the A share markets had attracted floods of new investors.

The number of investors opening new accounts for trading A shares on the two exchanges had risen more than 80 percent in March from February, the Shanghai Securities News said.

Brokers said A shares were overbought after recent gains, but expectations of further official support for the domestic markets were likely to keep share prices stable in the near term. On the B share market, Shanghai market heavy weight Zhejiang Southeast Electric Power Co was Monday's most active issue on cross-trading by domestic institutions and ended unchanged at $0.240 on volume of 2.24 million shares.

In Shenzhen, SEZ Real Estate (Group)was the most active, edging up HK$0.01 to HK$1.99 on volume of 2.36 million shares. The share has been rising since the firm's announcement last week that it planned to set up a cyberport in Shenzhen.

On Friday, the company warned investors of risks in its high-flying stock price, saying the cyberport was still in planning stage and details, including the total investment, had yet to be finalised.

Buying of A shares continued to focus on large-caps. Shanghai-listed Maanshan Iron and Steel was the most active, rising 0.05 yuan to 4.20 yuan on heavy volume of 45.15 million shares.-Reuters