Shanghai B-shares up 2.4 Percent in Volatile TradeShanghai B-shares rose 2.4 percent Tuesday to a record high for the eighth consecutive day in volatile trade, dealers said.The Shanghai Stock Exchange's B-share index advanced 4.23 points to 181.7. Turnover expanded to 3.02 billion yuan (US$365.1 million) from 2.42 billion yuan (US$292.87 million) in the previous session. The A-share index edged up eight points, or 0.35 percent, to 2,275.91 on turnover of 19.07 billion yuan. B-shares rebounded off their intraday lows on late institutional support and buying demand from local investors remained strong, dealers said, adding foreign institutions largely steered clear of B-share trading. China opened its hard currency B-share markets, previously reserved for foreigners, to domestic investors in late February. Shanghai B-share index has soared 119 percent since then. Analysts cautioned that the market's sustained gradual gains, without any pause for consolidation, may create pressure for a significant correction. "B-shares are due for a technical correction after soaring so much, but the downside potential will be limited since market liquidity is abundant and investors are confident of the medium-term prospect of B-shares," said Xiangcai Securities B-share analyst He Bin. More than 500,000 new investors have entered the market since the latest reform and a further rally is expected in June when securities authorities lift trading curbs and allow more new investors to enter the market. Heilongjiang Electric Power Co. topped Shanghai's B-share gainers, rising 5.6 US cents, or 6.6 percent, to 90.5 US cents. Shanghai Steel Tube Co. saw the largest decrease among B-shares, down 0.7 cent, or 0.6 percent, at US$1.14. The composite A and B-share index closed up 8.62 points at 2,176.67. |
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