HK stocks fall on concerns over Chinese economy

(For Shanghai market reports, click [.SS])
(Updates to Tuesday lunch close)

HONG KONG, May 20 (Reuters) - Hong Kong stocks slid nearly 2
percent on Tuesday as some fund managers trimmed their positions
amid lingering uncertainty over the impact of China's devastating
earthquake on the country's economy.

Industrial and Commercial Bank of China (1398.HK) tracked
losses in its Shanghai shares (601398.SS), falling 2.3 percent,
while China Mobile (0941.HK) lost 2.5 percent after it
reported slower subscriber growth in April.

The main board losses came a day after Beijing said economic
losses from the quake would amount to about 67 billion yuan ($9.6
billion) in Sichuan alone, while the deputy head of the China
Banking Association said the government would discuss how to
address bad loans linked to the disaster.

"Overseas markets did not provide good trading clues, but
foreign funds are probably worried about China's economy and sold
Hong Kong shares," said Steve Cheng, associate director at
Shenyin Wanguo.

The benchmark Hang Seng Index .HSI extended opening losses
to fall 1.87 percent to 25,260.11 by midday, weighed down by
local property shares.

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, dropped 2.09 percent to
14,067.74.

Mainboard turnover stood at HK$45.26 billion ($5.80 billion),
up from HK$38 billion by midday on Monday.

One bright spot was Asia Cement (China) Holdings Corp
(0743.HK), which jumped as much as 62 percent in its trading
debut, the strongest showing by a Hong Kong market newcomer this
year. [ID:nHKG14199]

Cement producers have been under the spotlight since China's
earthquake last week on optimism that demand for construction
materials will rise to meet reconstruction needs.

"The rally in Asia Cement shares is a bit overdone and should
come down by the end of the day," said Alfred Chan, chief dealer
at Cheer Pearl Investment.

The stock stood at HK$7.15 at the lunch break against a day
high of HK$8.0 and an initial offering price of HK$4.95.

China's top cement maker, Anhui Conch, rose 3.81 percent.

But mid-tier property conglomerate New World Development
(0017.HK) topped the list of blue-chip losers, falling 3.8
percent, while rival Sino Land (0083.HK) lost 3.5 percent.

Sun Hung Kai Properties (0016.HK), the city's largest
property developer, fell 2.6 percent. The stock has fallen nearly
7 percent in five straight sessions over management disputes.
Last week its chairman, Walter Kwok, filed a suit against his
brothers. [ID:nHKG322253]

Shipping counters were mostly lower despite the Baltic
Exchange's dry freight index .BADI hitting an all-time high on
Monday.

"Pacific Basin's share sale last week could be a hint that
global freight rates are peaking," Cheng said.

Dry bulk cargo ship operator Pacific Basin (2343.HK) fell 3.6
percent and Sinotrans (0598.HK) dropped 5.3 percent.
(Reporting by Alison Leung; Editing by Anne Marie Roantree)