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China's shares closed slightly lower again yesterday as fears of an outbreak of severe acute respiratory syndrome (SARS) virus terminated a short-lived technical rebound in morning trade, brokers said.
Shanghai's B share index fell 0.46 percent to 124.634 points, while Shenzhen's slipped 0.08 percent to 220.25. Hard currency B shares are open to Chinese and foreign investors.
Jinan Qingqi Motorcycle Co, which lost money in 2000 and 2001, was the biggest decliner and ended down 4.92 percent at an all-time low of US$0.251 after the Shanghai stock exchange blasted the company for poor disclosure.
The exchange criticized Jinan Qingqi in a statement yesterday for forecasting a heavy loss for 2002 in early April - an about-face from earlier predictions of profit.
Indices slid about two percent on Monday when punters fled tourism and airline shares after the government announced an alarming spike in cases of SARS and sacked two senior officials for mishandling the crisis.
"Recent reports and rumours about SARS have made investors uneasy," said analyst Luo Yanxin at Guohai Securities. "Many are reluctant to trade stocks. We expect share indices to move narrowly in the near term."
Yesterday's fall was also prompted by profit-taking in drug makers which had surged over past weeks as punters bet the SARS spread would help give such companies a shot in the arm.
Yuan-denominated A shares in antibiotics and traditional Chinese medicine maker Sanjiu Medical fell 2.37 percent to 9.90 yuan (US$1.20). The listed arm of China's top drug marker is nonetheless up 17 percent from March 26.
Auto stocks bucked the downtrend. They have attracted strong interest this year as the domestic industry boomed.
Top Chinese minivan maker Chongqing Chang'an Automobile's B shares were the most actively traded and one of the biggest gainers, closing up 3.04 percent at HK$6.10 (US$0.78) as a heavy 10.65 million shares changed hands.
Its B shares have surged 110 percent since October 28.
Shanghai's A share index finished 0.19 percent lower at 1,641.131 points but its Shenzhen counterpart inched up 0.15 percent to 461.17.
(China Daily April 23, 2003)
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