* HSI up 0.2 pct on Friday, down 1.1 pct this week
* CSI300 down 0.8 pct on day, down 2.8 pct on week
* China Unicom, Telecom have first daily gain in HK this
* Li & Fung hammered after Wal-Mart sales underwhelmed
By Clement Tan
HONG KONG, Nov 16 Shares listed in mainland
China fell on Friday, suffering a second straight weekly loss
and crimping gains in Hong Kong, as investors reduced risk on
uncertainty about the policies of the country's new leaders.
The Shanghai Composite Index and the CSI300 Index
of the top Shanghai and Shenzhen listings each lost
0.8 percent on Friday, with the latter closing at its lowest
since March 2009. They each lost nearly 3 percent this week.
The Hang Seng Index inched up 0.2 percent, while the
China Enterprises Index of the top Chinese listings in
Hong Kong gained 0.4 percent, each bouncing off one-month lows
set on Thursday. On the week, they lost 1.1 and 2 percent, also
their second-straight weekly losses.
Turnover in Shanghai was 24 percent below its 30-day
average, while Hong Kong was 20 percent lower.
"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
But in their latest effort to shore up the mainland stock
market, China's Ministry of Finance said a progressive tax
regime will apply on stock dividends for individuals from
January 1, 2013, with the tax rate heaviest for dividends from
shares held for less than a month.
The CSI300 and Shanghai Composite indexes are now each down
7.2 and 8.4 percent this year after combined losses exceeding 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 2.1 percent, while China Petroleum and Chemical Corp
(Sinopec) shed 2 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, shares of Chinese telcos were all broadly
higher on the day, with the two smaller sector players China
Unicom and China Telcom seeing their first
daily gain this week, rising 2.9 and 4 percent respectively.
China Mobile provided the biggest single boost for
the Hang Seng Index, rising 0.9 percent.
SJM Holdings, Macau's largest casino operator,
rose 0.8 percent after posting a 41 percent rise in
third-quarter net profit after markets closed on Thursday.
Limiting gains on Friday, global supply chain manager, Li &
Fung slumped 4.7 percent to its lowest since
mid-October after one of its major clients, Wal-Mart Stores Inc
WMT.N posted disappointing quarterly sales on Thursday.
Shares of Esprit Holdings dived 6.2 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.
Esprit could stand to be excluded from the Hang Seng Index,
when the index manager publishes the results of its quarterly
review later on Friday.