* HSI -0.3 pct, H-shares -0.7 pct, CSI300 -1.5 pct
* China property sinks after Beijing tightens pre-sales
* Jiangxi Copper drops, also hurt by Macquarie downgrade
* StanChart rebounds from more than 5-month closing low
By Clement Tan
HONG KONG, May 14 Mainland China shares suffered
their worst daily loss in three weeks on Tuesday, forcing a
reversal of early gains in Hong Kong markets, after official
media suggested that Beijing is unlikely to ease monetary policy
despite patchy April economic data.
The Chinese property sector was also hit by fears of more
tightening after the 21st Century Business Herald reported that
pre-sales rights for new housing projects in Beijing now require
the added approval from the mayor's office.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings shed 1.5 percent. The Shanghai Composite Index
slid 1.1 percent. Both indexes suffered their worst loss
since April 23.
The Hang Seng Index slipped 0.3 percent, while the
China Enterprises Index of the top Chinese listings in
Hong Kong declined 0.7 percent, each slipping further from last
Friday's two-month closing highs.
Losses in Hong Kong came in the weakest turnover since May
6, just over 5 percent below its average in the last month.
Shanghai volume sank to its lowest since May 2.
"The latest set of data suggests the economy remains
sluggish, and with policy easing looking unlikely, we might be
see more weakness when investors sell off the small and mid-cap
names, which have been outperforming on the year," said Zhang
Qi, a Shanghai-based analyst with Haitong Securities.
On Tuesday, the CSI500 of small- and mid-cap names
listed in the mainland fell 1.2 percent, but is still up more
than 8 percent on the year. The CSI300 is down 1.2 percent,
while the Shanghai Composite is down 2.3 percent in 2013.
Factory output growth and fixed-asset investment in the
world's second-largest economy were weaker than expected last
month, but the China Securities Journal reported that Beijing
could tolerate 7 percent growth, compared to the current 8
percent annual target.
In the same article, Zhu Baoliang, the director of the State
Information Center's economic forecasting department, said it is
not possible for China to cut interest rates because monetary
policy remains loose globally.
Beijing will complete April's batch of economic data with
the release of figures for monthly direct foreign investment on
Thursday and monthly home price data on Saturday.
Commodities counters were among the biggest percentage
losers. Jiangxi Copper fell 2.1 percent,
its third-straight loss in Hong Kong. Its Shanghai listing shed
Macquarie analysts downgraded their view on its H-share
listing from "outperform" to "neutral", while cutting their
price target by 32 percent, expecting copper prices to remain
weak through 2014 due to a worsened surplus of supply.
FROM PROPERTY TO MOUTAI
Chinese property-related counters were also further hurt by
a report in the Securities Times that new home prices were flat
in the first 12 days of May, while volumes and prices in the
secondary market declined in the capital.
China Vanke fell 2.7 percent in Shenzhen, while
Poly Real Estate slid 3 percent in Shanghai. In Hong
Kong, China Resources Land tumbled 3 percent, while
China Overseas Land fell 1.5 percent.
Producers of Chinese premium alcohol, often offered as gifts
to officials by those seeking favour, were hurt after Premier Li
Keqiang called for less political power in China's market
Kweichow Moutai dived 3.3 percent in Shanghai
after closing on Monday at its highest since Jan. 23. Wuliangye
shed 2.3 percent in Shenzhen and was set for its
worst loss since March 27.
Standard Chartered rebounded 2.4 percent
from Monday's more than five-month closing low. U.S. activist
investors Muddy Waters told a conference last week it had bet
against the bank because of its "deteriorating" loan quality.