China's share indices recovered a little yesterday, as travel firms such as Capital Tourism outperformed as investors had expected Beijing to be removed from a list of SARS-affected areas, brokers said.
Markets broke a six-day falling streak as the World Health Organization (WHO) said at the close of trading it had lifted a warning against traveling to Beijing.
Shanghai's B-share index edged up 0.24 percent to 114.511 points while Shenzhen's rose 0.81 percent to 219.18. Hard currency B shares are open to foreign and domestic investors.
"Many investors figured the news out ahead of time. They rushed into tourist firms, particularly those based in Beijing," said analyst Chen Renjin at Huatai Securities.
Capital Tourism Co leapt 6.93 percent to 12.49 yuan (US$17.2) as travel companies topped the gainers lists in Shanghai and Shenzhen.
The company said in late April its business had been hit by the outbreak of SARS and had fallen nearly 10 percent since then.
Beijing Jingxi Tourism Development Co was the top A-share gainer in Shenzhen with a 5.76 percent rise to 9.37 yuan (US$1.1). It has slid more than 20 percent since mid-April.
Shanghai's yuan-denominated A-share index edged 0.07 percent higher to 1,583.505 points while its Shenzhen counterpart rose 0.27 percent to 439.38.
Analysts said thin trade on the overall market indicated weak sentiment after six days of falls.
Losing ground were shares in large caps such as China Unicom and Sinopec Corp, as investors cashed out of shares to book profits, analysts said.
China United Telecommunications Corp, the country's second largest mobile operator, dipped 0.6 percent to 3.27 yuan (US$0.4) after a nearly 25 percent rise this year. It was the most heavily traded with 66.3 million shares changing hands.
Sinopec Corp, China's leading oil refiner, edged down 0.5 percent to 3.81 yuan (US$0.46) after gaining 30 percent this year.
The benchmark Shanghai composite index closed up 0.07 percent at 1,512.429 points.
On the forex market, China's yuan ended flat versus the dollar at 8.2773 after hovering near the high end of its thin trading band, dealers said.
The yuan was sandwiched between 8.2770 and 8.2774 in thin turnover of $330 million, down from Monday's US$530 million.
The yuan, which is not fully convertible under the capital account, has stayed near the firm end of the thin 8.2760 to 8.2800 range that the central People's Bank of China enforces, buoyed by the country's strong trade surpluses.
The central bank reaffirmed on Monday it would keep the exchange rate stable, shrugging off calls for a revaluation.
Foreign exchange officials and Hong Kong media said China plans to make it easier for foreign multinationals operating in the country to deal foreign exchange to help ease their capital strains.
The move was triggered by complaints from such firms that China's curbs on foreign exchange transactions had weighed on their operations, an official at the State Foreign Exchange Administration (SAFE) said.
"We have been studying the issue as foreign multinationals have put forward some demands as our restrictions on foreign exchange are not harmonious with their operations," said the SAFE policy and regulation department official.
"Such restrictions mainly cover non-trade items on the current account," said the official, who declined to be named.
The yuan fell to 7.0204 against 100 Japanese yen from Monday's 6.9949 but firmed versus the euro to 9.5567 from 9.5792. It closed unchanged against the Hong Kong dollar at 1.0611.
(China Daily June 25, 2003)
