Shanghai B shares sustained their winning streak yesterday, bucking a decline in the broader market, as investors cashed in the richly valued A shares and switched to relatively underperforming B shares.
The Shanghai B-Share Index climbed 3.85 per cent to a record closing high of 289.209 points.
After the recent rally, B shares were trading at an average of 26 times this year's earnings, compared with 33 times for A shares, said HSBC regional equity strategist Steven Sun.
The Shanghai B-Share Index has gained 122.26 per cent so far this year, outpacing the Shanghai Composite Index's 50.32 per cent advance.
The benchmark composite index dipped below 4,000 points in early trade, but clawed its way back to close down 0.69 per cent at 4,021.678 points.
The Shenzhen market's composite index rose 0.75 per cent to 1,114.78 points, but its B-Share Index slipped 0.81 per cent to 723.029 points.
