Shenzhen“s hard currency B shares closed slightly down in thin trade recently as many investors kept to the sidelines ahead of Taiwan“s presidential election.
The B share index edged down 0.55 of a…
Shenzhen“s hard currency B shares closed slightly down in thin trade recently as many investors kept to the sidelines ahead of Taiwan“s presidential election. The B share index edged down 0.55 of a point, or 0.69%, to 79.70 as turnover fell to HK$ 22.9 million from an already thin HK$ 27.9 million. “Investors were cautious as the outcome of the Taiwan election could have a great impact on the island“s relations with mainland China,” said a Haitong Securities broker. “Past experience tells us that tensions across the Taiwan Strait could lead to heavy losses on China“s stock markets and that kept many investors on the sidelines ahead of the election,” he said. Brokers said they had expected the B share index to see slight falls in thin trade on the last two trading days before the Taiwan election. China Southern Glass Co., which has forecast a loss for 1999, was the most active issue due to cross-trading by domestic institutions, brokers said.