CORRECTION: Shenzhen A-shares close morning higher; B-shares up sharply in heavy

SHENZHEN (AFX-ASIA) - A-share prices closed the morning higher led by hi-tech stocks, though turnover was thin as investor interest continued to focus on the B-share market, dealers said. B-share prices closed the morning sharply higher once again on heavy trade amid a mix of profit-taking and buying by domestic individuals, they said. The A-share sub-index rose 38.14 points to 5,316.46 on turnover of 3.46 bln yuan after trading between 5,334.71 and 5,283.82. The B-share sub-index closed 64.31 points higher at 1,455.48 after trading between 1,457.44 and 1,408.30. Analysts said the A-share gains appeared to be largely the result of institutional support, noting that there appeared to be little reason for gains in hi-tech stocks, particularly given the correction on the NASDAQ overnight. They said domestic buying of B-shares is likely to remain strong following the implementation last week of a policy giving domestic individuals formal access to the market, but cautioned that B-share prices are already high, particularly given the weak earnings capacity of many B-share firms. The component A- and B-share index closed 43.67 points higher at 4,720.79 on turnover of 4.8 bln yuan after trading to a high of 4,734.07 and a low of 4,684.91. Shenzhen Development Bank shed 0.07 yuan to 16.12 on 17.2 mln shares. China Vanke dropped 0.06 yuan to 14.16 on 1.2mln shares. China Venture Capital closed unchanged at 14.03 on 1.2 mln shares. Among hi-tech stocks, CITIC Guoan rose 0.96 yuan to 24.55 on 2.6 mln shares, while Beijing Centregate gained 0.87 yuan to 21.94 on 1.9 mln shares and Hunan TV & Broadcast rose 0.91 yuan to 26.8 on 1.4 mln shares. Among B shares, Bengang Steel Plates rose 0.25 hkd to 3.57 on 32.8 mln shares, while Shandong Airlines gained 0.44 hkd to 4.8 on 18 mln shares and China Southern Glass rose 0.55 hkd to 6.18 on 12.5 mln shares. Guangdong Electric Power gained 0.17 hkd to 5.29 on 17.1 mln shares.

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