Shanghai shrugs off Olympics failure

DESPITE disappointment that Beijing was not given the 2000 Olympics, the Shanghai market soared before profit-taking set in to end the week.

The Credit Lyonnais Shanghai A-share index closed the week down 33.44 points at 5,224.75.

The Shanghai B share index gained 1.46 points, ending at 787.67.

In Shenzhen, the A index fell 87.94 points or 4.47 per cent to end at 1,878.57, while the B index dropped 1.52 points to finish the week at 1,001.93.

Shenzhen markets have been plunged into gloom.

There is deep pessimism about prospects for the B-share market since overseas funds have started shifting into H shares and red chips in Hong Kong.

One broker said there were serious questions whether there was any need for a B-share market at all.

During the week the Shanghai markets were boosted by comments of senior authorities that the Chinese exchanges would be looking at quality, not quantity, and calling for stiffer listing requirements.