* HSI -0.1 pct, H-shares -0.8 pct, CSI300 -0.7 pct
* Shanghai volume robust, HK turnover weakest this year
* Profit taking hits outperforming Chinese beta plays
* Tencent jumps, GS says advertising revenue to spike
By Clement Tan
HONG KONG, Jan 16 Onshore China shares were
knocked off 7-1/2-month highs on Wednesday, also sinking Hong
Kong, as investors took profit on recent outperformers such as
Chinese financials ahead of more China economic data at the end
of the week.
In Hong Kong, Tencent Holdings bucked broader
weakness, jumping 3.5 percent to its highest since mid-November
after Goldman Sachs said the internet giant's advertising
revenues will be bolstered by its online video strategy.
The Hang Seng Index slipped 0.1 percent to close at
23,356.99 points, retreating further from the 23,400 level that
has proved an obstacle for much of the past two weeks. The China
Enterprises Index of the top Chinese listings in Hong
Kong shed 0.8 percent.
In the mainland, the Shanghai Composite Index and
CSI300 of the top Shanghai and Shenzhen A-shares each
shed 0.7 percent, falling from their highest levels since early
June, set the day before.
Losses in Shanghai came in relatively robust volumes despite
slipping 7 percent from Tuesday, which saw the best volume in 10
months. Hong Kong turnover was, however, its weakest this year.
"Investors are starting to take some profit ahead of China's
fourth-quarter GDP data this Friday," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
Monthly data for industrial output, housing prices, urban
investment and retail sales, also expected on Friday, could
determine whether the Hang Seng Index break above chart
resistance or correct to around 23,000.
China's annual economic growth may have quickened to 7.8
percent in the fourth quarter, a Reuters poll showed, snapping
seven straight quarters of weaker expansion, but the recovery is
likely to be tepid and the economy may need continued policy
Shares of China Life Insurance, the
country's largest insurer, fell 0.9 percent off a one-week high
in Hong Kong and 3 percent from a 21-month high in Shanghai.
China railway counters, which carried strong 2012 gains into
the new year, were also weaker on the day. China Railway
Construction dropped 1 percent in Hong Kong. The
decline trimmed its 2013 gains to 6 percent after a 106 percent
surge in 2012.
Kweichow Moutai sank 2.3 percent after the
official Shanghai Securities News reported that the leading
producer of premium Chinese white spirits has dropped sanctions
on suppliers for reducing prices.
Investors rotated into some consumer and technology names.
Strong gains on the day for Tencent Holdings helped its stock
break out of a six-week consolidation phase, suggesting it could
now track the strong rally seen for Chinese internet peers
listed in the United States.
CHINA PROPERTY JITTERS
Chinese property counters were a key source of weakness in
the onshore market after a series of news reports spawned by a
Jan. 15 report by the land survey and planning institute under
the country's land and resources ministry.
Citing the report, China Business News reported that Beijing
must prevent stimulative monetary policy from diminishing the
impact of property controls.
Poly Real Estate tumbled 3.4 percent in
Shanghai, leading a sub-index of property-related stocks
down 2 percent. China Overseas Land lost 0.8 percent
in Hong Kong.
Various official media reported that outgoing Premier Wen
Jiabao said more research is required on tax reforms to ensure
the healthy development of the real estate sector and equitable
The official China Securities Journal reported on Wednesday
that Beijing may need to increase land supply in first-tier
cities this year to stabilize land prices and market
expectations, citing unidentified sources.