Chinese shares rise to three-month high

(Xinhua)
Updated: 2009-11-17 19:37

BEIJING - Chinese equities continued their rise for the third consecutive trading day and closed slightly up Tuesday, with the benchmark Shanghai Composite Index rising to a three-month high.

The index, which covers both A and B shares, climbed 0.24 percent to 3,282.89 points, its highest point since August 6.

The Shenzhen Component Index lost 0.21 percent to 13,671.08 points.

Gains outnumbered losses by 488 to 369 in Shanghai and 435 to 353 in Shenzhen.

Combined turnover shrank to 314.6 billion yuan (46.1 billion U.S. dollars) Tuesday from 366.6 billion yuan on the previous trading day.

U.S. dollar-denominated B shares on the Shanghai Stock Exchange out-performed yuan-denominated A shares, with the B shares index up 2.69 percent to 256.98 points, its highest point since May 19 last year, on strengthened expectations of a yuan appreciation, dealers said.

China Merchants Securities, a leading domestic brokerage firm, which launched an initial public offering (IPO) Tuesday, retreated from a strong start in the morning, when it opened 12.94 percent higher from its issue price of 31 yuan per share.

Analysts said this was due to the stock's P/E ratio of 56.26, which was much higher than other leading domestic brokerage companies.

China Merchants Securities became China's 11th listed broker, and closed 8.42 percent higher than its issue price at 33.61 yuan per share.