Shanghai A-shares close at highs, B-shares higher in volatile trade

SHANGHAI (AFX-ASIA) - A-share prices closed higher, at a record high closing level, after rebounding off their early lows, dealers said.

	    Sentiment was firm amid hopes that a strong supply of liquidity will generate further gradual gains, they said, adding that liquidity is expected to receive a boost from the expected launch of open-ended securities funds, while investors are now less concerned that the expected flotation of listed companies' state shares will act as a drain on liquidity.

	    B-share prices closed higher, at a record high, after rebounding from mid-session lows, in highly volatile trade, dealers said.

	    While the sudden gains towards the end of both the morning and afternoon sessions may be an indicator of institutional support for B-share prices, domestic retail investor sentiment towards the B-shares also remains firm amid hopes of a surge in liquidity from June 1, when domestic individuals gain the right to use foreign currency deposited after Feb 19 to invest in 

B-shares, dealers said.

	    The A-share index gained 8.87 points or 0.38 pct to a high of 2,296.70 on turnover of 16.04 bln yuan after trading to a low of 2,279.74.

	    The B-share index closed 1.60 points or 0.77 pct higher at 208.92 after trading between 208.96 and 205.62.

	    The composite A- and B-share index closed 8.72 points or 0.39 pct higher at its high of 2,203.37 on turnover of 20.01 bln yuan after trading to a low of 2,186.65.

	    The SSE-30 index dropped 6.48 points to 4,022.71.

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