* HSI +0.3 pct, H-shares +0.5 pct, CSI300 -0.9 pct
* Turnover weak, with all indexes set for 2nd straight
* China Mobile top HSI boost, most defensives strong too
* Li & Fung slides almost 6 pct after disappointing Wal-Mart
By Clement Tan
HONG KONG, Nov 16 Mainland Chinese shares are
set for a fifth loss in seven days on Friday, crimping Hong Kong
gains and underperforming Asian peers as investors reduced risk
exposure on uncertainty about the policies of the country's new
The CSI300 Index of the top Shanghai and Shenzhen
listings was down 0.9 percent at 2,174.4 by midday, after
flirting with its lowest intra-day level since March 2009 in
mid-morning trade. The Shanghai Composite Index also
shed 0.9 percent.
The Hang Seng Index rose 0.3 percent, while the China
Enterprises Index of the top Chinese listings in Hong
Kong gained 0.5 percent. Both indices rebounded from their
lowest levels in a month, set on Thursday.
Friday midday volumes in Shanghai sank to the lowest in a
week, while Hong Kong turnover at midday was at a November low.
All four indexes are set for a second-straight weekly loss,
with the Hang Seng now down 1 percent, the China Enterprises
down 2 percent, the CSI300 down 3 percent, and the Shanghai
Composite down 2.8 percent.
"It's still unclear what kind of changes the new leadership
are going to make, and this is feeding mainland investors'
jitters as they look to cut losses going into the year's end
after two straight annual losses," said Zhong Hua, a
Shanghai-based analyst with Guotai Junan Securities.
China's ruling Communist Party unveiled an older,
conservative new leadership line-up on Thursday that appears
unlikely to take the drastic action needed to tackle pressing
issues like social unrest, environmental degradation and
The CSI300 and Shanghai Composite indexes are currently down
7.3 and 8.5 percent on the year after combined losses exceeding
more than 30 percent in the two years before.
On Friday, Chinese banking and energy majors extended their
downward spiral in the onshore market. Bank of China
slid 1.1 percent, while China Petroleum and Chemical Corp
(Sinopec) shed 2.1 percent.
This comes after China said it will cut gasoline and diesel
prices from Friday, for a fourth time this year, in response to
declines in international crude oil prices, dealing another blow
to loss-making refineries in the world's second-largest oil
DEFENSIVES STRONG IN HONG KONG
In Hong Kong, China Mobile was the top boost to
the Hang Seng Index, rising 1.6 percent. Hong Kong & China Gas
, another defensive counter, was also among the top
gainers among index components, rising 2 percent.
SJM Holdings, Macau's largest casino operator,
rose 0.7 percent after posting a 41 percent rise in
third-quarter net profit after markets closed on Thursday.
The Hang Seng Index manager will publish the results of its
quarterly review of the Hong Kong benchmark, after markets close
on Friday in which it may add or exclude constituents.
Limiting gains on Friday, Esprit Holdings dived
5.3 percent after the company said late on Thursday that its
former chairman Michael Ying has not yet requested to join its
board. Esprit surged 22 percent on Thursday after Ying doubled
his stake in the ailing retailer.
Global supply chain manager, Li & Fung slumped 5.5
percent to its lowest since mid-October after one of its major
clients, Wal-Mart Stores Inc posted disappointing
quarterly sales on Thursday.