Shanghai's B share index edged up 0.48 percent to 119.412 points, with turnover halving to a thin US$9.2 million.

Shenzhen's rose 0.28 percent to 194.81 as turnover dropped 43.1 percent from Friday to HK$59.6 million (US$7.6 million). Hard currency B shares are open to Chinese and foreign investors.

Lanzhou Aluminium Co, one of the first Chinese companies to report 2002 results, was the fourth biggest decliner on Shanghai's A share market as investors took profits after a 14.2 percent rise in its share price over the previous week.

The shares fell 3.48 percent to 9.15 yuan (US$1.11) after the major aluminium smelter said on Saturday it made a net profit of 166.8 million yuan (US$20.15 million) in 2002, up 86.8 percent from 2001.

Analysts said trade was slack yesterday as many investors waited for possible fresh government action to boost the markets after Shang Fulin, China's newly appointed top securities regulator, toured the stock exchanges last week.

"Some punters were very cautious and kept on the sidelines to see whether the securities regulator would initiate some steps to help boost the markets," said Great Wall Securities analyst Duan Kai.

Other retail investors hunted for bargains in technology stocks yesterday, brokers said.

Plasma display panels producer SVA Electron Co was the biggest B share gainer in Shanghai with a rise of 1.8 per cent to US$0.633.

Wideband communication equipment maker Shanghai Broadband Technology Co was the second largest A share gainer in Shanghai, jumping 8.8 percent to 11.74 yuan (US$1.39).

However, analysts questioned how long the tech rise could last, saying it was a mere speculative rally.

"How long these stocks will stay hot with investors is questionable," said Orient Securities analyst Xia Ruipeng. Most investors bought and sold shares very quickly to avoid being trapped, he added.

The benchmark Shanghai composite index, which tracks both B and yuan-denominated A shares, inched up 0.11 percent to 1,386.314 points.

The Shenzhen composite sub-index ended at 2821.60, up 0.37 percent.

China markets were unaffected by a rally in China-linked stocks in the Hong Kong market yesterday, spurred by investors seeking shelter in the mainland's booming economy with the global outlook uncertain.

The Hong Kong-listed shares in China's largest refiner, Sinopec Corp, jumped 4.2 percent to

HK$1.49 (US$0.19), helped by an upgrade on the stock by JP Morgan. But Sinopec's domestic A shares fell 0.3 percent to 3.08 yuan (US$0.37).

CITIC Securities Co was the most heavily traded A share with 109.2 million shares changing hands and they closed 1.4 percent higher at 6.30 yuan (US$0.76).

China's yuan fell two notches at 8.2768 against the US dollar yesterday but was still near the firm end of its policy band due to an ample supply of dollars from exporters, dealers said.

The yuan moved narrowly between 8.2766, Friday's close, and 8.2769 as exporters were settling hard currency income earned in December, a usually strong month for foreign trade, they said.

Turnover was a busy US$800 million, up from an already heavy US$750 million on Friday.

"Strong dollar supply from exporters kept the yuan at high levels today," said a dealer at a domestic bank. "The trend is likely to continue in the near term."

The yuan has been moving near the strong end of the narrow trading range of 8.2760 to 8.2800 the central People's Bank of China enforces, mainly because of strong exports.

(China Daily January 14, 2003)