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B shares continue to surge

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Mainland investors continued to buy up Shenzhen B shares, pushing the index to its highest point in 18 months.

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It surged 10.6 points to 92.06 as turnover hit $191.7 million - the strongest since the 1992 bull run.

Great Wall Securities (Bin He) general manager Yu Jun said: 'Gains were across the broad as investors snapped up any shares available without considering fundamentals.' Traders said the buying spree was sparked by expected measures to revive B shares, similar to the market-boosting reforms introduced by Shenzhen authorities to A shares in past months.

The Shenzhen A-share index is up 70 per cent since the start of the year. With surging A share prices, domestic investors are more willing to put their money on cheaper, foreign-accessible B shares.

At Thursday's close, they were trading at a 50 per cent discount to their A share counterparts.

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While Chinese investors have been scrambling to be part of the market, foreign funds have taken advantage of the rally to sell.

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