For those who did not have the vision to stock up on B-shares, they have already missed the boat, according to analysts. Analysts and fund managers warn overly enthusiastic investors of the potential risks associated with B-share investment. China's B shares, with the change of policy that allowed mainlanders to trade B shares with legal foreign currencies, have become the hottest property in the market. Most analysts predict the market, when it reopens today, will quickly shoot up to its daily limit of 10 per cent within a few minutes to half an hour. 'Those who hold B shares will not sell and those who want to buy will have to raise the price,' said Moufung Chan, managing director of Noble Apex Advisors. 'The trading volume will be thin.' Chen Lan, general manager of B&Y Investment, a Shenzhen-based brokerage company, expects such momentum to maintain at least for three days. Norman Ho, fund manager of Value Partners, a boutique Hong Kong-based fund house that invested heavily in B shares, said the market would jump by more than 50 per cent. There is no consensus where the new B share price level should stay. 'Even at the current level, they are not cheap - considering the quality of these companies,' Mr Chan said. 'However China's stock market is policy driven and now the policy objective is to stimulate the stock market.' 'The question is,' said Ms Chen: ' at that level [30-50 per cent higher], are those shares still attractive?' Theoretically, A and B shares are expected eventually to merge. B shares are now traded at a heavy discount to A shares for the same underlying stock. Analysts, however, say the gap will remain - at least until the yuan is fully convertible. 'I will look at individual stocks when B shares rise more than 50 per cent,' said Ms Chen. At present, B shares trade at one third of A shares' valuation, at an average PE ratio of 20. Song Guoqing, economic professor of Peking University, calls the B-share rush a new stock craze that will likely see most small investors become victims. 'The buyers will never outsmart the sellers. The sellers are those institutional investors and insiders who have stocked up on B shares,' Mr Song said. 'Most small investors who buy now will lose money.' Mr Chan said: 'Frankly, they [the small investors] have already missed the boat.' Value Partner fund, which has a fund investing 70 per cent of the holdings in B shares, has stopped taking new customers. 'We do not accept new subscriptions now. We do not want to dilute the interests of existing investors,' said the firm. Mr Chan suggested investors should look instead at H shares, most of which co-listed with A shares and are trading at even lower PE ratios (nine times on average). H shares will merge with A shares over the longer term, he said, probably in two to three years.