Shenzhen shares close morning lower on continued institutional selling

A- and B-share prices closed the morning lower after institutional selling erased mid-session gains. Institutions remain under heavy pressure to sold ahead of the government's end-September deadline for the withdrawal of illegally-invested bank loans from the market. Meanwhile, investors were concerned about other government policies that have kept share prices under pressure in recent weeks, including an on-going drive to expose financial and accounting irregularities at listed firms and the recent state-owned share offloading at the same price as newly-issued shares. Fears about the outlook for the global economy as the US apparently prepares to launch military action in Central Asia, in retaliation for last week's terrorist attacks on the US, have kept many investors sidelined, they said. The component A- and B-share index closed 11.52 points lower at 3,655.00 points on turnover of RMB1.86 billion after trading to a high of 3,681.88 and a low of 3,633.58. The A-share sub-index dropped 10.61 points to 4,064.95 points on turnover of RMB1. 74 million yuan after trading between 4,092.59 points and 4,042.29 points. The B-share sub-index closed 14.64 points lower at 1,342.69 points after trading between 1,364.69 points and 1,329.31points.

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