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China B shares down as A shares fall

SHANGHAI: China's hard currency B shares were lower on Tuesday as a fall on the domestic A share market dampened sentiment already shaky due to a lack of long-awaited B share market-boosting measures, brokers said.

The Shanghai B share index edged down 0.29 percent to 42.060 points as turnover fell sharply to only $764,000.

Shenzhen's B index fell 1.16 percent to 90.82 points in thin turnover of HK$16.05 million, slightly higher than Monday morning.

"The fall on the A share market this morning triggered further losses on the B market where sentiment was already shaky," said a broker at Guotai J&A Securities. B share trading has been lacklustre in the shadow of a strong bull run on the A share market in the past few weeks in which the A share indices have hit repeated record highs.

B share investors have complained the government has left their market in the cold in the past few months while providing a series of measures to boost domestic share trading.

Brokers said the B indices were likely to consolidate in the near term as investors grew more impatient for official action.

On Tuesday morning, Shenzhen Petrochemical Co 2013 was the biggest decliner on technical selling, brokers said. It fell HK$0.17, or 7.83 percent, to HK$2.00 on volume of 124,071 shares.

In Shanghai, Sanmao Textile Co 900922 was the heaviest faller on retail selling, brokers said. It lost $0.08, to 3.10 percent to $0.250 on thin volume of only 22,000 shares. The A share indices were lower on technical selling after recent heavy gains, brokers said. Volumes dropped sharply as investors turned cautious due to signs of overbuying.

By midday, Shanghai's A index .SSEA had fallen 0.46 percent to 1,934.313 points as turnover plunged to 5.72 billion yuan.

Shenzhen's A index fell 0.41 percent to 611.42 points. Turnover was down sharply to 6.23 billion yuan.

Brokers said A shares could see further losses in the next few days, but expectations of further official support for the domestic markets would prevent steep falls.

Selling in the morning focused on shares which had recorded heavy gains in the recent market bull run, brokers said.

Shanghai-listed infrastructure construction firm Yunsheng Co 600767.SZ was the biggest faller, dropping 0.94 yuan, or 4.95 percent, to 19.56 yuan on volume of 479,300 shares.-Reuters