* HSI +0.2 pct, H-shares -0.3 pct, CSI300 flat
* China property A-shares sink, some developers suspends
* Yanzhou Coal slips in Hong Kong after Aussie offer
By Clement Tan
HONG KONG, July 9 Hong Kong and China shares
were weak on low volumes on Tuesday, with mainland-listed
property developers mostly down after China reported a
higher-than-expected inflation rate for June.
Annual consumer inflation quickened to 2.7 percent in June
from May's 2.1 percent, overshooting market expectations for 2.5
percent on soaring food prices. Producer prices fell 2.7 percent
in June from a year earlier, a 16th straight monthly deflation.
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings was flat, while the Shanghai Composite
Index inched up 0.3 percent. Both had earlier bounced
off their lowest since June 27.
The Hang Seng Index was up 0.2 percent at 0345 GMT,
while the China Enterprises Index of the top Chinese
listings in Hong Kong slipped 0.3 percent.
"I don't think anybody's expecting Beijing to loosen
(policy), the key here is more efficient credit allocation and
for that reason, people will be watching out for the money
supply and loan growth data this time round," said Kelvin Wong,
Julius Baer's China-Hong Kong equity analyst.
That data is expected by July 15. Beijing is due to release
June trade numbers on Wednesday, and second-quarter GDP growth
figures is due on Monday, as are monthly urban investment,
industrial output and retail sales figures.
The Economic Information Daily newspaper reported on Tuesday
that Beijing's strategy for cutting industrial overcapacity may
involve heightened scrutiny on bank lending, differentiated
power prices and limiting energy consumption.
On Tuesday, China property counters were among the biggest
index drags in the mainland. China Vanke dived 3.3
percent in Shenzhen, while Poly Real Estate slid 2.3
percent in Shanghai.
The official Shanghai Securities News reported on Tuesday
that more than six real estate A-share listed firms have
suspended trading while they seek refinancing or complete major
In Hong Kong, the smaller Chinese developers saw some of the
bigger percentage losses as a two-day rally stalled. Hopson
Development tumbled 6.6 percent, while Kaisa Group
dived 3.6 percent.
But the larger Chinese developers saw gains. China Resources
Land climbed 2.2 percent, while China Overseas Land
rose 0.6 percent.
Yanzhou Coal dived 3 percent in Hong
Kong after offering on Tuesday to purchase the 22 percent of
Yancoal Australia Ltd it does not already own in a deal
valued at A$905 million ($825.95 million).