Shanghai A-shares close slightly higher; B-shares up sharply in heavy trade

SHANGHAI (AFX-ASIA) - A-share prices closed slightly higher, led by gains in high technology stocks, while investor attention continued to focus on the B-share market, dealers said. B-share prices closed sharply higher, with turnover remaining relatively heavy although lighter than that seen in recent sessions, they said. Domestic buying of B-shares remained strong following the launch of a policy giving domestic ndividuals formal access to the market, but some analysts warned that the small capitalisation of the market, and the fact that the restrictions on B-share trades are lighter than those on A-share trades, are making the market easy prey for manipulators. The A-share index gained 8.95 points or 0.42 pct to 2,114.91 on turnover of 10.35 bln yuan after trading between 2,118.44 and 2,103.95. The B-share index closed up 8.69 points or 7.28 pct at 128.01 after trading between 130.16 and 119.59. Analysts said the gains in high-tech and internet-related A-shares appeared to have been triggered by reports that Shenzhen A-share Searainbow Holding has been given exclusive rights to run a Disney website operated by a subsidiary of Walt Disney, and run Disneyblast pay-channel services in China. The gains may also have been triggered by news that Lycos Asia has acquired Chinese website yRice.com. They said the gains in high-tech stocks may be short-lived, particularly given the recent weakness on the NASDAQ. The composite A-share and B-share index closed up 10.76 points or 0.53 pct at 2,011.66 on turnover of 13.21 bln yuan after trading to a high of 2,015.50 and a low of 1,999.47. The SSE-30 index rose 9.74 points to 3,889.26.

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