* HSI +0.8 pct, H-shares +0.7 pct, CSI300 -0.1 pct
* HSBC up 2 pct, tracks overnight strength after possible
Ping An sale
* Citic Pacific slides after injunction against Clive Palmer
* Tingyi sinks further, hit by JP Morgan downgrade
By Clement Tan
HONG KONG, Nov 20 Hong Kong shares climbed to
their highest in a week on Wednesday, set for a third-straight
daily gain, following strong Wall Street gains on signs of a
potential political compromise that could help avert a looming
U.S. fiscal crisis.
In the mainland, markets reversed gains after data showed
foreign direct investment inflows fell 3.5 percent in the first
10 months of the year from a year ago, extending the longest run
of decline in three years.
The CSI300 Index of the top Shanghai and Shenzhen
listings was down 0.1 percent at the midday trading break, while
the Shanghai Composite Index shed 0.3 percent.
The Hang Seng Index rose 0.8 percent to 21,439.1, its
highest since Nov 14. The China Enterprises Index of the
top Chinese listings in Hong Kong rose 0.7 percent.
"Some people are starting to come back into the market after
the correction in the past two weeks, which has created some
opportunities, particularly in the more cyclical sectors," said
Edward Huang, an equity analyst with Haitong Securities
On Tuesday, shares of Chinese internet giant Tencent
Holdings rose 2.9 percent, rebounding from a two-month
low set on Monday after its sector rival, Nasdaq-listed Sina
Corp, soared 7.8 percent overnight.
Chinese media reported that Alibaba Group, the
country's largest e-commerce company, planned to buy a stake in
Sina's popular "Weibo" microblogging service.
CNOOC Ltd rose 2 percent on a media report that
China's state-owned oil giant has accepted management and
employment conditions set by the Canadian government to win
approval for its $15.1 billion takeover of Nexen Inc.
HSBC Holdings jumped 2 percent in Hong
Kong, tracking strong overnight gains after Europe's largest
bank said it is in talks to sell its $9.3 billion stake in
China's Ping An Insurance, stepping up a programme to
shed non-core operations to boost profitability.
Ping An Insurance slid a further 0.4
percent in Hong Kong and 2.2 percent in Shanghai.
TINGYI AT LOWEST SINCE AUGUST
Also limiting gains in Hong Kong, Citic Pacific
dived 4.5 percent to its lowest in more than a month after it
filed a court injunction against Australian mining tycoon Clive
Palmer over disputed royalties at the $8 billion Sino Iron
project in Western Australia, the latest in a long list of
hurdles for the troubled project.
Food and beverage giant Tingyi Holdings slid a
further 3.9 percent to HK$22.05, its lowest since Aug. 22, hurt
by a JP Morgan downgrade after its underwhelming third quarter
earnings on Monday.
JP Morgan analysts downgraded Tingyi from "neutral" to
"underweight", while reducing their June 2013 price target from
HK$18.00 to HK$16.00, saying the premium it typically trades
over its sector peers is now "stretched".
"We find decelerating sales growth in beverages
disappointing, especially in the case of Tingyi which typically
trades at a premium to the sector due to its stable double-digit
sales growth," they said in the same note.