Shanghai A-shares close morning flat; B-shares higher

SHANGHAI (AFX-ASIA) - A-share prices closed the morning flat on concern that the government may soon launch a policy of floating listed companies' state shares, dealers said.	    They said doubts about the quality of listed companies' earnings in 2000 added to the cautious mood. While many companies have already reported strong earnings growth in 2000, the bulk of this improvement appears to have been due to an increase in extraordinary gains via asset sales, and growth in income from investment on the stock market, they said.	    While the underlying trend may point to some earnings growth last year, the level of this growth seems insufficient to justify further market gains, they said.	    Sentiment also remains cautious amid doubts about the outlook for Sino-U.S. relations following a mid-air collision between a U.S. surveillance aircraft and a Chinese fighter, they added.	    The said a resolution still seems distant, despite official media reports indicating an easing in Sino-U.S. tensions after the U.S. expressed regret over the loss of the Chinese fighter pilot.	    B-share prices closed the morning higher amid continued strong domestic buying, they said, adding that domestic investors continued to focus largely on hopes that A- and B-share prices will continue to converge.	    The A-share index dropped 2.10 points to 2,211.72 on turnover of 5.92 bln yuan after trading between 1,223.49 and 2,209.89.	    The B-share index closed 1.30 points higher at 160.54 after trading between 162.00 and 159.80.	    The composite A- and B-share index closed 1.61 points lower at 2,110.98 on turnover of 6.79 bln yuan after trading to a high of 2,122.22 and a low of 2,109.20.	    The SSE-30 index dropped 4.99 points to ,020.67. 

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