Decline in B shares continues

THE Shenzhen B market continued to slide yesterday, with the index shedding a slight 0.2 per cent on turnover of $2.9 million.

The Credit Lyonnais Shenzhen B index was down 2.25 points to finish on 1,150.95.

Overseas investors remain reluctant to enter the market. China Vanke, which is in a row with the Shenzhen brokerage J&A Securities, saw no trading on the exchange.

Shenzhen Gintian was down three per cent, or 10 per cents, to $6.50, with a $744,000 turnover.

Shareholders of the conglomerate has reportedly rejected a board plan for a new share issue and cash pay-out.

It is the first time directors of a Shenzhen-listed company have been voted down.

Instead of accepting a plan for a large cash dividend, shareholders demanded more free stock, it was reported yesterday.

This is expected to trigger dissatisfaction from holders of B shares who favour cash payouts over the issue of shares.

Home appliance manufacturer Tsann Kuen China Enterprises was unchanged at $4.90, with $954,000 worth of shares changing hands.

The Credit Lyonnais Shenzhen A index gained 19.56 points, or 1.46 per cent, to finish on 1,355.51, with a turnover of 374.2 million yuan.