Shanghai shares/close -- 3 (Beijing UFsoft debut boosts sentiment)

Analysts said A-share sentiment may have received a boost from the strong debut of Beijing UFsoft, which may justify higher price levels for other hi-tech and small-cap stocks.

	    Beijing UFsoft closed at 92 yuan, the highest ever price level for an A-share firm, off an issue price of 36.68 yuan, on 21.4 mln shares.

	    The company's closing price today is 161 times its earnings per share last year.

	    The company achieved a 5.87 pct return on net assets in 2000.

	    Great Eagle Securities analyst Ma Jian said the software firm has a small capitalisation, with only 25 mln traded shares, and had initially planned to list on the expected second board market.

	    He said investors have in the past been wary of buying shares priced above 60 yuan, but if Beijing UFsoft sustains its current price levels, this may support gains in other software and hi-tech companies, he said.

	    Shiji Investment Consulting analyst Hua Yi said the Beijing UFsoft saw more than 80 pct of its A-shares change hands today.

	    "Many retail investors sold out shares with high profits, as institutions carried out strong buying."

	    However, Hua said he believes it unlikely that the high price of Beijing UFsoft's shares will drive gains in other software companies, since these are already trading at high levels.

	    Among other small-cap shares, Weifang Yaxing Chemical gained 1.2 yuan to 22.9 on 6.2 mln shares, while Fujian Dongbai Group rose 0.93 to 17.12 on 3 mln shares.

	    On its first day of trading, Hubei Qianjiang Pharmaceutical closed at 35.9 yuan, off an issue price of 9.7 on 27.6 mln shares.

	    Founder Yanzhong rose 0.4 to 36.49 on 10.1 mln shares, while Xingye Housing gained 0.3 to 18.8 on 4.9 mln shares.

	    Shanghai Petrochemical rose 0.04 to 5.1 on 9.7 mln shares.

	    China Minsheng Banking closed unchanged at 19.5 yuan on 4.3 mln shares.

	    Sichuan Changhong rose 0.1 yuan to 11.42 on 3.2 mln shares.

	    Among B-shares, Jinan Qingqi rose 0.009 usd to 0.754 on 20.4 mln shares.

	    Zhejiang Southeast Electric Power closed unchanged at 0.944 on 9.9 mln shares, while Heilongjiang Electric Power rose 0.007 to 0.944 on 9.7 mln shares.

	    Shanghai Erfangji gained 0.019 to 0.934 on 7 mln shares.

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