SHANGHAI B shares were mixed yesterday in light trading as investors switched from companies expecting poor earnings to build banks to subscribe to new listings.
'Good companies will survive 1994's austerity measures quite well, but weaker companies will continue to suffer,' said Ben Chan, senior analyst at Baring Securities.
The Credit Lyonnais Shanghai B index fell 0.04 per cent, or 0.24 points, to close at 634.23 points.The Shanghai A Index fell 2.03 points, or 0.06 per cent, to 3,507 points.
'Volume has dropped because of new listings, and people are turning away from bad companies and being more selective,' said an analyst at a foreign securities firm in Hong Kong.
Shanghai Jintai Machinery will be the first new company to offer B shares in Shanghai this year.
Wai Gaoqiao, a developer of the foreign investment zone of Pudong, fell 0.4 cents 45.6 cents with 481,000 shares changing hands.
Mr Chan said the company's net profit for last year was half the forecast figure.
