Chinese share prices slightly firmer

Chinese share prices closed 0.59 percent higher on Friday, supported by gains in the telecom sector which helped offset liquidity pressure before the listing of the Bank of China, the country's second largest lender, next month, dealers said.
The market overall continued positive, having risen over the past week, and while there is some concern about the impact on liquidity of the Bank of China's and other Initial Public Offerings (IPOs), the new share issues will help generate fresh interest longer-term.
The Shanghai A-share Index added 9.97 points to 1,688.01 on turnover of 20.85 billion yuan (2.61 billion dollars) and the Shenzhen A-share Index was up 4.27 points or 1.00 percent at 432.76 on turnover of 11.66 billion yuan.
The benchmark Shanghai Composite Index, which covers both A- and B-shares, rose 9.65 points or 0.60 percent at 1,605.71 on turnover of 20.93 billion yuan.
The yuan ended at 7.9987 to the dollar, down from the previous finish at 7.9962. "Telecom issues were in favour on bargain-hunting interest but liquidity was under pressure as investors shift their focus to the retail subscription of the Bank of China's A-share IPO," said Wu Dazhong, an analyst at Chinalion Securities.
Wu said the market will now likely trade in a narrow range until the Bank of China lists here on July 5.
Dealers said sentiment is largely positive on the resumption of IPOs.
Datong Coal closed at 11.04 yuan, up from its IPO price of 6.76 yuan. The Shanghai Securities News said Bank of China could attract as much as 500 billion yuan worth of applications for the retail tranche of its 20 billion yuan A-share IPO.
On the day, telecom equipment stocks rose on bargain-hunting, with Amoi Electronics rising its daily limit of 10 percent to 3.99 yuan. Fiberhome Telecommunication Technologies gained 0.17 yuan or 2.41 percent to 7.22 while Wuhan Yangtze Communications Industry Group climbed 0.30 yuan or 3.62 percent to 8.58.
Real estate developers attracted support after China Vanke, up 0.13 yuan or 2.45 percent to 5.43, forecast a 50-60 percent rise in interim net profit on higher property sales.
Shanghai New Huang Pu Real Estate gained 0.20 yuan or 4.02 percent to 5.18. Lander Real Estate rose 0.08 or 2.63 percent to 3.12. Metal stocks slipped in line with underlying commodity prices. Shandong Gold-Mining fell 0.62 yuan or 2.15 percent to 28.27 andSino-Platinum Metals lost 0.26 or 2.26 percent to 11.25.
The Shanghai B-share Index added 1.30 points or 1.48 percent to 89.33 on turnover of 85.30 million US dollars and the Shenzhen B-share Index was up 1.82 points or 0.65 percent at 280.61 on turnover of 101.02 million Hong Kong dollars (12.98 million US dollars).