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China's shares closed Tuesday steady as a rally among power counters offset losses in steel counters amid lingering worries over the uncertain impact of Beijing's campaign against overheated investment. The benchmark Shanghai composite index, grouping foreign-currency B shares and local-currency A shares, nudged 0.25 percent higher to 1,307.429 points at the close.
Yangtze Power Co Ltd, which oversees the giant Three Gorges Dam hydroelectric project, ended the day at 9.28 yuan, gaining 0.76 percent and ranking among the day's most active stocks.
The electricity generator posted strong third-quarter earnings recently and has outperformed over past weeks.
"It functions as an economic barometer," said Gui Haoming, an analyst at Shenyin and Wanguo Securities. "It's pulling in money from institutional investors."
But steel stocks dimmed on Tuesday.
Wuhan Steel Processing Co Ltd and Maanshan Iron and Steel Co, China's third-and sixth-largest metal makers, slid nearly 2 percent to finish at 3.51 yuan and 3.76 yuan, respectively.
Analysts expect the index to move in a tight range this week amid hovering concerns that Beijing's moves to clamp down on investments to overheated industries such as steel and autos might hurt the market.

Copyright Reuters, 2004

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