Share prices in Shanghai ended lower yesterday as China Merchants Bank decided to press ahead with an unpopular multibillion bond sale.

The shanghai Composite Index, which tracks both yuan-denominated Class-A shares and hard-currency Class-B shares, dropped 1.27 percent to 1365.51.

The a-share index also fell 1.27 percent to 1429.78.

"It is another case that listed companies ignore the interest of shareholders and highlight the basic problem facing China's securities market," said Wu Jie, a trader with Kinghing Securities Co Ltd.

Major shareholders of China Merchants Bank, the country's biggest listed lender, approved the plan to raise 10 billion yuan (US$1.2 billion) from the convertible bond sale at Tuesday's shareholder meeting, in spite of the op-position from 47 securities investment funds, which hold large amounts of the bank's shares.

China spacesat Co Ltd, a manufacturer of small satellites that are used for communications, plunged 8.91 percent to 11.24 yuan as investors sold shares to lock in profits, after gaining almost 50 percent since the end of August, because of speculation on China's spacecraft launch.

(Shanghai Daily October 17, 2003)