Shenzhen shares close lower on concerns over punishment for manipulators

SHENZHEN (AFX-ASIA) - A-share prices closed lower in volatile trade as institutional support was offset by selling pressure amid concerns over the impact of a government decision to punish four institutions for share price manipulation, dealers said.	    Institutional share price manipulation is widespread in the domestic markets, and any suggestion that the institutions will be forced to stop these practices raises doubts about the sustainability of the current high share prices, they said.	    The A-share sub-index dropped 39.46 points or 0.74 pct to 5,246.23 on turnover of 6.92 bln yuan after trading between 5,300.65 and 5,240.95.	    B-share prices also closed lower in highly volatile trade, while sentiment was weaker amid concerns over the impact of the government's decision, they said.	    The B-share sub-index closed 18.36 points or 0.89 pct lower at 2,033.78 after trading between 2,092.07 and 2,021.56.	    The component A- and B-share index closed 36.42 points or 0.75 pct lower at 4,769.64 on turnover of 8.52 bln yuan, after trading to a high of 4,822.25 and a low of 4,765.01.	    A report in the China Securities newspaper said investment advice companies Guangdong Xinsheng, Guangdong Zhongbai, Guangdong Baiyuan and Guangdong Jinyi have been fined, and had illegal income confiscated, after they were caught using 627 personal share trading accounts and three corporate trading accounts to cross-trade shares in Yorkpoint S&T.	    The four companies together owned 85 pct of Yorkpoint's traded shares.	    Some analysts said the punishment for the four firms may make institutions more cautious about manipulating shares, at least in the near term.	    However, other analysts said institutions are confident that the punishment of the four companies will not herald a broader crackdown on share price manipulation, since the government remains cautious of taking any steps that risk causing share prices to undergo a sharp correction.	    Index-heavyweight Shenzhen Development Bank dropped 0.19 yuan to 15.53 on 7 mln shares, after trading to a high of 15.8 amid institutional support.	    Vanke shed 0.01 to 14.66 on 3.4 mln shares.	    Angang New Steel shed 0.04 to 4.58 on 4.7 mln shares, while Beijing Shougang dropped 0.1 to 10.53 on 3.3 mln shares.	    Monkey King gained 0.1 to 6.81 on 8.3 mln shares 	    Among B-shares, China Bicycle dropped 0.02 hkd to 3.11 on 24.1 mln shares.	    Shenzhen Properties & Resources shed 0.2 to 6.28 on 2 mln shares, while Shenzhen Great Ocean dropped 0.36 to 6.77 on 4.8 mln shares.	    Chongqing Changan, which recently launched a car-making joint venture with Ford Motor Co, rose 0.2 to 4.95 on 10.8 mln shares.	    Wuhan Boiler rose 0.24 to 7.33 on 9 mln shares. 

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