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China's shares closed mixed yesterday, with the benchmark Shanghai composite index finding some support as it approached its lowest level this year.
The Shanghai composite index, which tracks both A and B shares, went up 7.585 points or 0.55 percent at 1,378.752, while the Shenzhen sub Index also gained 21.77 points or 0.78 percent to finish at 2810.55.
Shanghai's hard currency B shares index, open to foreigners, inched down 0.46 percent to 112.476 points, half what it was at its peak at the end of May 2001.
Shenzhen's B share index ended 1.49 percent higher at 188.28 points on a technical rebound after a lengthy market decline, brokers said.
But turnover on the B share markets was still tiny at US$19.511 million in Shanghai and HK$59.661 million (US$7.64 million) in Shenzhen, although that was up 54 percent and 19 percent respectively.
"Most Shanghai B share firms' operating performances are not satisfactory, so investors were very cautious about buying such firms," said Orient Securities analyst Xia Ruipeng.
"The index slide was obviously stopped by support near 1,339 points, which was its lowest level so far this year and also its lowest level in 1999," said Li Jiangtao, a Shanghai Securities analyst.
"It's a good sign for the market that the index closed above the year low, but whether the market has hit bottom or is still in a downtrend depends on how long and how strong the index can hold above 1,339," he added.
Analysts said the moderate increase in turnover yesterday in A shares - 27 percent in Shanghai and 15 percent in Shenzhen - was good for the market in the near term.
"The A share market uptrend was accompanied by an increase in turnover, which means more buying emerged. Technically speaking, it's also good if the market has hit the bottom," Orient's Xia said.
A number of Shanghai B shares bucked the trend, including industrial sewing machine maker Shanggong Co which rose 3.52 percent, and Hainan Airlines Co, which climbed 2.95 per cent.
Shanggong has been favored by investors since it announced plans for an additional B share offering last week, while Hainan Airlines Co said yesterday it would swap assets worth 167.44 million yuan (US$20.22 million) with its shareholder HNA Group.
(China Daily November 28, 2002)
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