Shanghai shares/close -- 2 (B-share gains support market sentiment: analyst)

China Securities sales manager Zhang Jie said A-share prices are 

currently high and could come under pressure from profit-taking at any time, 

but added that the strong upward momentum in the B-share market should give 

strong support to the composite index.

	    Although share prices saw some consolidation yesterday, following news 

that the China Securities Regulatory Commission has issued rules requiring 

securities firms to separate investors' share trading deposits from their own 

funds from the beginning of next year, the market gained support from the 

strong B-share sentiment, she said.

	    She also said that since there is still no sign that B-share IPOs will 

resume any time soon, and since most B-share prices are still lower than 

their A-share counterparts, there is scope for further B-share gains.

	    Shiji Investment Consulting analyst Hua Yi said he expects the market to 

retain its upward momentum, despite recent consolidation, and despite 

pressure on liquidity following a recent acceleration in the pace of A-share 

IPOs.

	    "Although the composite index has continued to chart record highs, many 

shares have lagged the index. 

	    "Several small-caps paying interim dividends have seen active 

institutional buying, while many large-caps have been traded flat or lower," 

he said.

	    Since there is unlikely to be a merger of A- and B-share markets in the 

next three years, more companies are likely to see their B-share prices rise 

above their A-share prices, he said, although he added that he expects 

B-shares to undergo a period of consolidation before June 1.

	    On its first day of trading, Sichuan Guodong Construction closed at 25.79 

yuan, off an issue price of 12.28 on volume of 41.2 mln shares.

	    China Minsheng Banking rose 0.28 yuan to 20.11 on 6.6 mln shares.

	    Baotou Steel Union shed 0.04 yuan to 7.06 on 5.6 mln shares, while 

Baoshan Iron & Steel dropped 0.01 yuan to 5.43 on 14.5 mln shares.

	    Shanghai Petrochemical shed 0.01 yuan to 5.01 on 2.7 mln shares.

	    Sichuan Changhong declined 0.13 yuan to 11.18 on 2.6 mln shares.

	    Among B-share index heavyweights, Zhejiang Southeast Electric Power rose 

0.063 usd to 1.041 on 35.6 mln shares, while Heilongjiang Electric Power 

gained 0.02 usd to 1.012 on 14.5 mln shares and 





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