China B-shares end morning slightly lower; telecoms retreat

China B-shares ended the morning session slightly lower after a sell-off on Wall Street following the assassination of Pakistan opposition leader Benazir Bhutto, dealers said.

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

The Shanghai B-share Index ended the morning down 0.62 points or 0.17 pct at 366.25 and the Shenzhen B-share Index fell 1.79 points or 0.25 pct to 710.13.

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 on a rising yuan."

In Shanghai, Shanghai Haixin Group Co Ltd (SHB 900917; SHA 600851) lost 0.018 usd to 0.986. Eastern Communications Co Ltd (SHB 900941; SHA 600776) declined 0.005 usd to 0.735, after it gained 6.17 pct yesterday.

In Shenzhen, Nanjing Postel Telecommunications Co Ltd (SZB 200468) fell 0.11 hkd to 4.68, following a 9.61 pct jump yesterday.

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

The FTSE/Xinhua China B 35 Index was down 24.28 points at 11,946.70.

(1 usd = 7.3 yuan)