China B-shares close slightly lower as telecoms retreat

China B-shares closed slightly lower in the last trading day of the year after a sell-off on Wall Street following the assassination of Pakistan opposition leader Benazir Bhutto.

Telecom stocks were hit by profit-taking. The sector soared yesterday after China's cabinet urged regulators to improve their implementation of the third-generation (3G) mobile network rollout.

The Shanghai B-share Index fell 0.93 points or 0.25 pct to 365.93 on turnover of 514.98 mln usd and the Shenzhen B-share Index fell 2.23 points or 0.31 pct at 709.69 on turnover of 362.57 mln hkd.

Over the full year, the Shanghai B-share Index gained 181.23 pct while the Shenzhen B-share Index rose 63.78 pct.

B-shares, denominated in hard currencies, "retreated due to the weakness in the US market," said a Shanghai-based analyst who asked not be named. "Investors locked in profits in telecom plays and sold textile companies, probably due to the rising yuan."

In Shanghai, Eastern Communications Co Ltd (SHB 900941; SHA 600776) declined 0.014 usd to 0.726, after it gained 6.17 pct yesterday.

Shanghai Erfangji Co Ltd (SHB 900902; SHA 600604) lost 0.012 usd to 0.712.

In Shenzhen, Nanjing Postel Telecommunications Co Ltd (SZB 200468) fell 0.09 hkd to 4.70, following a 9.61 pct jump yesterday.

Luthai Textile Co Ltd (SZA 000726; SZB 200726) shed 0.16 hkd to 7.44.

China Vanke Co Ltd (SZB 200002; SZA 000002) fell 0.44 hkd to 20.25.

The FTSE/Xinhua China B 35 Index was down 38.64 points at 11,932.34.

(1 usd = 7.3 yuan)