Shanghai shares/close -- 3 (B-share P/E ratios high: analyst)

Pingan Securities Research Institute assistant director Chen Shouhong said that if the B-shares again hit their upper trading limits tomorrow, Shanghai B-shares will be trading at 32 times earnings, while Shenzhen B-shares will be at 22 times earnings. "The price gains will reach a limit. If the B-share prices are half of A-share prices, further gains may create a bubble," he said, adding that the strong B-share buying could rapidly turn into panic selling as sentiment turns. Since B-shares are currently trading at price-to-earnings ratios well above those for H-shares, foreign investors may also begin trimming their positions in B-shares soon, he said. In debut trading, China Construction international closed at 18.27 yuan, against an issue price of 6.0 yuan, on 23.1 mln shares. Shanghai Automotive dropped 0.06 yuan to 12.34 on 12.7 mln shares, while Dongfeng Automobile rose 0.2 yuan to 9.29 on 10.4 mln shares and FAW Jinbei rose 0.09 yuan to 7.52 on 10.1 mln shares. China Minsheng Banking dropped 0.08 yuan to 17.02 on 4.2 mln shares. Shanghai International Airport shed 0.03 yuan at 10.51 on 2.8 mln shares. Among B-shares, Worldbest Kama gained 0.044 usd at 0.488 on 8.1 mln shares and Yitai Coal gained 0.042 usd at 0.46 on 7.7 mln shares. Zhejiang Southeast Electric Power rose 0.059 usd to 0.646 on 2.7 mln shares.

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