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China's hard currency B shares closed down yesterday in lackluster trading, dealers said.
The Shanghai B-share index closed 0.53 points or 0.49 percent lower at 123.26 on turnover of US$3.58 million after trading between 124.71 and 122.74.
Shenzhen's B-share index closed 6.68 points or 0.58 percent lower at 1,143.86 on turnover of 35.39 billion Hong Kong dollars (US$4.54 billion) after trading between 1,154.92 and 1,137.67.
Shares ended lower after dropping from mid-session highs as retail selling continued, dealers said.
Trade volume was thinner than previous days with most investors sticking to the sidelines after recent sharp falls, analysts said.
"Sentiment was sluggish and most technical indices appeared negative for the short-term outlook of B shares," said a Xiangcai Securities B-share analyst.
Adding to the market woes was the weakness of domestic A shares as many institutional investors liquidated positions ahead of their year-end book-keeping, analysts added.
"Shares will consolidate at current levels and trade will continue to be lackluster in upcoming sessions," the Xiangcai analyst predicted.
The Shanghai composite index closed 12.40 points or 0.84 percent lower at 1,451.29 on turnover of 3.75 billion (US$452.8 million) after trading to a high of 1,468.33 and a low of 1,447.49.
The Shanghai A-share index dropped 13.07 points or 0.9 percent to 1,516.56 on turnover of 3.69 billion yuan (US$445 million).
Analysts said the benchmark Shanghai composite index was likely to continue to fall this week to test the psychologically important support of 1,450 points.
"The recent continuous falls are typical signs of bearish markets," said analyst Chang Jin of Qinghai Securities.
The Shenzhen component sub-index closed 45.45 points or 1.52 percent lower at 2,938.10 on turnover of 2.30 billion yuan (US$277.9 million), after trading to a high of 2,991.10 and a low of 2,932.17.
The Shenzhen A-share index dropped 54.97 points or 1.35 percent to 3,281.58 on turnover of 2.26 billion yuan (US$272.9 million) after trading between 3,344.73 and 3,275.85.
"Brokerages are selling to prepare for year-end settlement, causing a liquidity squeeze in the market," said an analyst of Shenyin & Wanguo Securities. "Indices are likely to fall further in the near term."
Another analyst said the market remains under pressure as institutions trim positions ahead of the year end.
He also said the perception that the markets are being opened and internationalized at a faster pace is likely to keep share prices under pressure.
Sewing machine-producer Shanggong topped B-share gainers on the back of its announcement that the company plans to issue less than 100 million B shares at 1 yuan (12.07 US cents) each and dropped their original application for additional A-share offers. It topped B-share gainers, gaining one cent, or 1.7 percent to close at 61.7 US cents.
The Shanghai Lujiazui Finance and Trade Zone Development Co was the biggest loser, inching down 1.6 cents or 2.1 percent to 74 US cents.
The composite A and B-share index closed 12.4 points down to 1,451.29.
(China Daily November 19, 2002)
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