China¡¯s hard-currency B shares turned in their best single-day performance of the year yesterday after the market¡¯s chief regulator announced ¡°new¡± measures designed to give more openings to foreign investors.

Some analysts, however, cautioned investors about getting too excited. They pointed out that the announcement, made by Zhou Xiaochuan, chairman of the China Securities Regulatory Commission, contained very little, if any, news.

Yet the Shanghai B-share Index jumped almost 10 percent to 67.69, closing 15.38 points short of this year¡¯s peak. Shenzhen¡¯s B-share benchmark finished the day at 118.22, also a gain of nearly 10 percent.

Zhou reportedly said that foreign companies doing business in China soon will be allowed to list on the A-share market, which is now reserved for domestic investment. Such a development truly would be news.

Yet, Shanghai¡¯s A-Share Index rose less than 1 percent, edging up to 2096.39.

Analysts interviewed by Shanghai Daily were at a loss to explain investor response. Most said the market reacted not to what Zhou actually said but to a belief that the securities watchdog is planning additional stimulus actions that will serve to bring B-shares more in line with the higher-priced A shares.

What touched off all the trading was a statement by Zhou that foreign brokers will be allowed seats on the Shanghai and Shenzhen stock exchanges for buying and selling B shares and that Sino-foreign joint securities firms could be established following the country¡¯s admission to the World Trade Organization.

China¡¯s B-share markets are now slated for foreign investors and traded in U.S. dollars in Shanghai and Hong Kong dollars in Shenzhen.

Analysts pointed out that foreign brokers already are allowed seats for B-share trading, and that the post-WTO joint-venture pledge is already well-known.

¡°There is nothing new here,¡± commented Liang Zhiping, analyst for Guotai Junan Securities.

(Eastday)