PERSISTENT concern about China's short-term economic prospects was named yesterday by traders as the main cause for a fall in B-share prices.
''Even though the latest inflation figures were encouraging, they still showed that inflation remains high, suggesting the government can't meet its target,'' said Rico Cheung, an investment analyst at Crosby Asset Management.
The Credit Lyonnais Shanghai B Index fell 2.54 points, or 0.3 per cent, to 799.37 on total turnover of US$2.81 million, down from $3.38 million on Monday. Bloomberg reported 10 stocks fell, seven rose and 11 remained unchanged.
The A-share index lost 23.01 points, or 0.85 per cent, to close at 2,687.64. The day's most active B-share stock was Chlor Alkali, which closed unchanged at 24 US cents with 747,200 shares traded.
The PVC and caustic soda manufacturer is particularly popular with local investors who can trade B shares provided they have access to a foreign passport.
Yaohua Pilkington Glass was also active, rising 0.95 per cent to $1.06 with 649,000 shares traded, including a large cross-trade.
The glass industry is under the spotlight at present with China's largest float glass manufacturer, Luoyang Glass, set to start trading shares in Hong Kong on July 8.