Shenzhen Petro deal dominates

SHENZHEN'S B-share index closed down slightly yesterday in trading dominated by a cross trade of 1.3 million shares in Shenzhen Petrochemical.

The Credit Lyonnais B index closed down 3.26 points, or 0.3 per cent, at 1,073.82. The A-share index gained 33.26 points, or 2.72 per cent, to end at 1,256.84.

Shenzhen Petrochemical fell 5.88 per cent to close at HK$4.80. The foreign brokerage house involved in the cross trade said the trading price was lowered for technical reasons.

Tellus Machinery and Electronics fell 4.54 per cent to $3.15 with just 2,000 shares dealt. China Southern Glass dropped 2.9 per cent at $8.20.

Lizhu Pharmaceutical led rising issues, gaining four per cent to $5.20.

Foreign investors continued to treat Shenzhen B shares warily, preferring other investment routes into China including Hong Kong-listed H shares.

''We need to see the Chinese Government really put an effort into improving the B-share market rather than spend all its time promoting the overseas listings,'' said a floor trader.