Shanghai shares/close -- 3 ("ST" shares extend gains)

Xiangcai Securities analyst He Bin said punishment of the four institutions followed recent comments by CSRC vice-chairman Laura Cha stating the commission's commitment to cracking down on trading irregularities.	    Despite concerns over this issue, several institutions continued to drive up the prices of loss-making companies with "special treatment" status, with the gains justified by hopes that the companies will achieve a rapid return to profit via asset restructures, he said.	    Although B-shares underwent consolidation after weeks of sharp gains, they could resume their upward momentum after a correction of around 20 points, he said, noting that investors expect B-shares to surge after June 1, when regulatory changes allow more domestic investors to use their foreign currency to buy B-shares.	    Anhui International Trust & Investment analyst Zhang Huo said sentiment was weaker amid concerns over the CSRC's decision to punish four institutions for share price manipulation, but added that it would be impossible for the government to crack down on manipulation on a large scale.	    He said many institutions are confident that the CSRC will not target many cases of share price manipulation, since the CSRC needs to preserve market stability in order to maintain the market's role as a source of funds for state firms.	    He added that the four institutions' gains from manipulating Yorkpoint's shares appeared to be greater than the 449 mln yuan confiscated from them.	    "Only sanctions under criminal law would cool institutions' enthusiasm for manipulating shares," he said.	    Among large-caps, Shanghai Automotive rose 0.08 yuan to 13.35 on 4.8 mln shares, while China Minsheng Banking gained 0.11 to 18.26 on 2.8 mln shares and Sichuan Changhong rose 0.01 to 11.17 on 2.3 mln shares.	    Baoshan Iron & Steel dropped 0.01 yuan to 5.4 on 10.8 mln shares, while Maanshan Iron & Steel shed 0.03 to 3.93 on 4.2 mln shares.	    Among shares which were recently traded sharply higher amid institutional support, Shanghai Diesel dropped 0.4 yuan to 15.4 on 1 mln shares, while Shanghai Chlor-Alkali shed 0.6 to 18.5 on 4.2 mln shares and Shanghai Feilo dropped 0.35 to 12.2 on 3.2 mln shares.	    Among shares with "special treatment", Shanghai Forever rose 0.17 yuan to 11.72 on 1.6 mln shares, while Anshan No.1 Construction rose 0.07 to 6.83 on 1.9 mln shares.	    On their first day of trading, Inner Mongolia Erdos Cashmere's A-shares closed at 22.23 yuan, off an issue price of 16.8 on 46.6 mln shares.	    The company's B-shares closed 0.089 usd lower at 1.376 on 9.9 mln shares.	    Among other B-shares, Zhejiang Southeast Electric Power closed down 0.022 usd at 0.852, after dropping sharply towards the end of the second session, while Heilongjiang Electric Power shed 0.012 to 0.841 on 5.6 mln shares.	    Lujiazui Finance dropped 0.012 usd to 0.923 on 14.8 mln shares.	    Shanghai Chlor-Alkali shed 0.027 usd to 0.807 on 14.9 mln shares. 

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