MARKET bearishness on China's steel makers has left Guangzhou Iron and Steel (Guanggang) hesitant about selling shares to foreigners. The company has secured a B-share quota for listing on the Shenzhen Stock Exchange, but has opted to sell shares to domestic investors through an A-share offering. Guanggang director Ou Jiongshi said the B-share issue had been delayed because of unfavourable market conditions. 'We are also monitoring the performance of Magang,' he said, referring to Hong Kong-listed Maanshan Iron & Steel Co which has been snubbed by foreign investors because of uncertainty brought on by China's austerity measures. Magang announced in August that its interim profit tumbled 93 per cent, battered by weakening product prices, higher costs and huge foreign-exchange losses. Mr Ou said Guanggang was now seeking approval to issue A shares. The company was restructured into a shareholding entity in late 1993, with the province's overseas investment arm, Guangdong Enterprise, taking a 30 per cent stake. Austerity clamps have hit Guanggang because its products were used in the construction sector, which has suffered from a curb on fixed-asset investment. This year, its initial profit target was 80 million yuan, which had been revised down to 60 million yuan, Mr Ou said. In the first half, the company reported a profit of 20 million yuan.