Shanghai B-shares -- 2 (regional declines support B-share gains analyst)

Shiji Investment Consulting analyst Hua Yi said China's B-share markets appear to have benefited from the weaker performance of regional markets, since this has generated an inflow of funds as investors seek more attractive investment opportunities on the mainland. Since the launch at end-February of a policy allowing domestic individuals to invest in B-shares, a total of 80 bln hkd has been injected into B-share trading accounts in Shenzhen, Hua said, adding that this injection has coincided with a weaker performance on the Hong Kong stock market. This fund inflow has been a key driver of the sharp gains in Shenzhen B-share prices over recent weeks, and these gains have in turn supported gains in A-shares and Shanghai's B-shares, he said.

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