SHANGHAI B-share trading was dominated yesterday by Steel Tube, which supplies steel piping to the power industry and car-maker Shanghai Volkswagen.
Investors were bidding up Steel Tube because of the potential offered by China's booming construction industry, analysts said, referring to a Beijing forecast that the country would spend US$1 trillion on infrastructure projects by the year 2000.
''Infrastructure-related companies make a good concept stock for United States investors,'' said Lawrence Ang, a stock analyst with SBCI Finance Asia. ''Volkswagen is still expanding production. It is a captive client.'' First quarter demand for steel fell 44 per cent compared with the same period last year but, as a niche player, Steel Tube had escaped much of the cutback, Mr Ang said.
The Credit Lyonnais Shanghai B-share index gained 0.71 points to 800.08 on total turnover of US$3.4 million, up from $2.81 million on Tuesday. The A-share index gained 41.12 points, or 1.53 per cent, to close at 2,728.76.
Steel Tube was the day's most active issue, rising 0.5 per cent to 40 cents, with 2.06 million shares changing hands.
At these levels, Steel Tube was also considered a cheap buy, analysts said.
