SH Index falls as investors dump B shares
(Shanghai Daily)Updated: 2007-03-05 17:21 Shanghai Composite Index fell 1.6 percent today as investors sold off holdings in foreign-currency denominated "B-shares" after officials denied rumors those stocks might be merged with the mainstream Chinese-currency shares.
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The Shanghai market's B-share index plunged 6.9 percent to 161.44.
Investors began selling B-shares, which are traded separately from the main Chinese currency-denominated "A shares," after Zhu Congjiu, president of the Shanghai Stock Exchange, told reporters there were no plans to merge the two markets.
Speculation that the markets might be merged had boosted B-share prices in
recent weeks. Even after today's tumble, Shanghai's B-share index was still 24
percent above where it began the year. The A-share index was up 4.11 percent for
the year, despite a nearly 9 percent plunge on February 27 that rattled global
markets.
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