Shanghai shares close morning higher amid confidence in govt support

SHANGHAI (AFX-ASIA) - A-share prices closed the morning slightly higher in response to recent government moves that were widely seen as a sign that the government is keen to prevent a correction in share prices, dealers said.	    B-share prices closed the morning higher, off sharp highs, in volatile trade amid continued strong domestic buying and heavy profit-taking following the B-shares' huge gains over recent weeks.	    Official media reported over the weekend that the China Securities Regulatory Commission will investigate only one of the country's ten fund management companies over trading irregularities, even though a government-instigated investigation found irregularities at eight of the country's 10 funds.	    Analysts said many investors responded positively to this news believing the government's action will be insufficient to deter institutions from manipulating share prices in future, noting that many retail investors, as well as institutions, believe price manipulation is positive since it appears to provide opportunities for rapid price gains.	    They also noted that the release of the results of the investigation into trading irregularities was apparently timed to coincide with news yesterday that the government is making progress with plans to allow the launch of open-ended securities funds.	    This has also been interpreted as a sign that the government is unwilling to allow a tightening of supervision to cause share prices to correct, they said.	    The A-share index gained 6.49 points to 2,198.56 on turnover of 5.59 bln yuan after trading between 2,206.35 and 2,193.00.	    The B-share index closed 2.05 points higher at 152.48 after trading between 154.85 and 150.78. 

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