CORRECTED-HK shares slide 2.7 pct as properties, finance fall

(Corrects to say turnover rose not fell)

(For Shanghai stock market reports, click [.SS])
(Adds Thursday close, details)

HONG KONG, Dec 13 (Reuters) - Hong Kong stocks fell 2.7
percent to a two-week closing low on Thursday, tracking weak
regional markets, as a plan by the U.S. and other central banks
to ease credit market turmoil failed to calm investors.

But shares in China Oriental Group Co Ltd (0581.HK) jumped as
much as 31 percent after trading resumed on Thursday following a
general offer for the firm from ArcelorMittal (ISPA.AS)(MT.N),
the world's largest steelmaker. [ID:nHKG133963]. The stock ended
19 percent high at HK$6.45.

The benchmark Hang Seng Index .HSI, which hit a low of
27,606.23, lost 776.61 points to close at 27,744.45. It has
gained about 39 percent this year.

"Japanese stocks and other regional markets were falling as
the U.S. subprime bond problem has not yet been solved and there
is a sign of deterioration," said Alex Tang, research director at
Core Pacific-Yamaichi International.

The China Enterprises Index of H shares .HSCE, or Hong
Kong-listed shares in mainland companies, fell 3.72 percent to
16,332.08 as worries over further austerity measures in the
mainland dampened buying interest.

The index has risen 58 percent so far this year.

"The recent choppy market has consumed some of the buying
power. People are staying on the sidelines waiting for early next
year to restructure their portfolios," said Steven Cheng,
associated director at Shiyin Wanguo.

Brokers said the market was in a correcting mode and was
lacking momentum, with the blue-chip index likely to test the
November low of 26,200.

Mainboard turnover rose to HK$127.1 billion (US$16.3 billion)
from HK$117.27 billion on Wednesday.
Financial and property shares led the slide, with the
financial sub-index .HSNF losing 2.2 percent, weighed down by a
3.8 percent fall in China Life (2628.HK), a 3.5 percent drop in
China Construction Bank (0939.HK) and a 0.97 percent loss for
HSBC (0005.HK).

The Hang Seng properties sub-index .HSNP, which hit an
all-time high earlier this month, lost 2.56 percent despite local
banks following a U.S. rate cut this week.

Cheung Kong (0001.HK) was down 2.9 percent at HK$139.40,
Henderson Land (0012.HK) slid 2.4 percent to HK$72.5 and Sun Hung
Kai Properties (0016.HK) fell 1.9 percent to HK$158.20

China Eastern Airlines (0670.HK) fell 12.7 percent to HK$6.52
after it said on Thursday a $920 million stake purchase by
Singapore Airlines (SIAL.SI) and Temasek Holdings was a "final
deal", casting doubts over a possible counter bid by Air China.
[ID:nHKG152446].

Singapore Airlines had on Wednesday said it did not plan to
raise its $918 million bid for a 24 percent stake in China
Eastern Airlines, despite speculation that the bid was too low
and could attract rival offers. [ID:nPEK89164]

Yue Yuen Industrial (Holdings) Ltd (0551.HK) bucked the
downtrend to jump 11.8 percent to HK$27.90. The footwear maker
for brands including Nike, Adidas, Reebok and Asics said it
proposed to spin off its retail business on the main board in
Hong Kong on completion of a restructuring.
here

Another bright spot was Chinese coking coal miner Hidili
Industry International Development Ltd (1393.HK), which surged
9.1 percent. UBS said on Thursday it had initiated coverage of
Hidili with a buy rating and set the price target at HK$18.18 per
share. The investment bank highlighted Hidili's growth potential
through acquisitions and its position as a China coking coal
play.
(US$1=HK$7.8)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree)