Shanghai's B share index nudged up 0.03 percent to 129.698 points in thin trade while Shenzhen's inched up 0.18 per cent to 200.10.

Turnover on the hard currency B share markets, open to foreign and Chinese investors, was only US$8.02 million in Shanghai and HK$54.38 million (US$6.57 million) in Shenzhen.

Shares staged a moderate rebound in early trade before ending only slightly higher amid weak retail buying, dealers said.

"Some speculators who chased quick gains picked up low-priced stocks in an attempt to ride the rebound," said Tiantong Securities B-share analyst Wang Zhengming.

"Without concrete market-boosting policies to cheer investor morale, shares will remain range-bound at current levels," Wang said.

"Light speculation in loss-making companies helped push the indices up slightly," said analyst Wu An of CITIC Securities.

"But thin volume indicated little follow-through buying."

Shenzhen-listed Shengrun Group was the biggest B share gainer, jumping 5.11 percent to HK$2.88 (36.92 US cents) on thin volume of 203,672 shares.

Chinese punters often speculate in loss makers in the hope that government-led corporate asset restructurings would help them reverse fortunes dramatically.

Share prices have fallen nearly 10 percent since early September, battered by negative factors including frequent stock offers, poor corporate earnings and a government crackdown on market corruption.

Indices rose about half a point on yesterday morning after a State newspaper reported that regulators were slowing the pace of initial public offerings to support the markets, but the rise lost steam in the afternoon due to weak sentiment, brokers said.

"Weak investor confidence has kept fresh money from flowing into the markets. We expect the markets to remain weak in the near term," said analyst Cao Xuefeng of Huaxi Securities.

The official Securities Times said regulators appeared to have slowed the pace of IPO approvals to help stabilize markets.

CITIC Securities, for instance, delayed the launch of an intended 2.76 billion yuan (US$333 million) domestic A share offer, reserved for Chinese investors, originally scheduled for late October, the newspaper said.

Analysts said they expected the benchmark Shanghai composite index to move narrowly around the key psychological support level of 1,500 points in the near term.

The index, grouping A and B shares, edged down 0.15 percent to 1,507.496 yesterday.

Shenzhen's sub-index dipped 0.06 percent, to close at 3,036.18.

Forever Bicycle Co was Shanghai's B share star performer, closing up 2.15 percent at US$0.617 after reporting a steep rise in net profits for the third quarter as well as the first nine months of 2002.

The bicycle maker posted a slim profit for 2001 after having been in the red from 1998 to 2000, thanks to a government-orchestrated injection of high-quality assets that helped it diversify into bowling equipment.

Shanghai Friendship and Overseas Chinese Co saw the biggest decrease among B-shares, sliding 0.9 cents or 1.2 percent to 77.1 US cents.

Shanghai's A share index edged down 0.15 percent to 1,574.929 points and its Shenzhen counterpart inched down 0.04 percent 464.34.

(China Daily November 1, 2002)