Shenzhen A-shares close lower; B-shares higher

SHENZHEN (AFX-ASIA) - A-share prices closed lower on continued declines in index-heavyweight Shenzhen Development Bank, dealers said.	    Earlier in the week, the bank announced it has revised down its net profits in 1998 and 1999 by a combined 752.6 mln yuan, and has used all of its earnings in 2000 to fund retroactive provisions on bad loans.	    Declines in this stock offset institution-led gains in other market sectors, particularly hi-tech shares, dealers said.	    The A-share sub-index dropped 39.81 points or 0.71 pct to 5,537.97 on turnover of 11.74 bln yuan after trading between 5,590.88 and 5,528.21.	    B-shares closed higher amid continued strong buying by domestic retail investors, they said.	    They added that B-share investor sentiment was little affected by news which confirmed that many foreign investors have been using the B-shares' recent sharp gains as an opportunity to cut large positions in the market.	    Jiangling Motors earlier announced that DBS has sold all of its B-shares in the company, amounting to a 5.35 pct stake.	    The B-share sub-index closed 25.74 points or 1.21 pct higher at 2,143.99 after trading between 2,162.91 and 2,127.82.	    The component A- and B-share index closed 31.50 points or 0.62 pct lower at 5,033.78 on turnover of 13.63 bln yuan after trading to a high of 5,079.93 and a low of 5,023.81.	    Yorkpoint Science & Technology and China Venture Capital, both of which are subjects of investigations by the China Securities Regulatory Commission for share price manipulation, closed sharply higher.	    Newland Securities analyst Yu Ziqian said the gains may be related to rumours that the commission has completed its investigations of the two companies and will impose only lenient punishment on those involved in price manipulation.	    However, Yu said any news that manipulators will not be punished harshly is unlikely to elicit a strong market response, given a widespread belief that the commission is reluctant to crack down on trading irregularities for fear of causing a major correction in share prices.	    Yorkpoint gained 2.65 yuan to 29.12 on volume of 3.1 mln shares, while China Venture Capital rose 0.98 yuan to 14.33 on 14.4 mln shares.	    Shenzhen Development Bank dropped 0.17 yuan to 16.59 on 8.2 mln shares.	    China Vanke dropped 0.18 yuan to 15.36 on 4 mln shares.	    Jiangling Motors dropped 0.22 yuan to 9.08 on 2.8 mln shares, following its earlier announcement that DBS has sold all of its B-shares in the company, amounting to a 5.35 pct stake, while its B-shares closed at 0.08 hkd to 5.34 on 3 mln shares.	    Beijing Shougang dropped 0.2 yuan to 11.27 on 6.6 mln shares.	    Among B-shares with "special treatment" status, Gintian shed 0.03 hkd to 3.71 on 4.5 mln shares, while China Bicycle dropped 0.02 hkd to 2.97 on 6.8 mln shares and Shenzhen Properties fell 0.06 hkd to 6.08 on 2.1 mln shares.	    Among other B-shares, China Southern Glass rose 0.45 hkd to 9.28 on 10.9 mln shares, while Bengang Steel Plates gained 0.04 hkd to 5.19 on 8.6 mln shares. 

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