China shares jump led by energy issues, HK lags

HONG KONG, July 22 (Reuters) - Hong Kong shares inched up on Wednesday with investors holding back as the market tested a fresh 10-month high but Chinese stocks jumped 1.9 percent as energy issues were scooped up on their solid earnings outlook.

The market appeared unfazed by a total solar eclipse that darkened Shanghai's skies for several minutes shortly after the start of trade. Eclipses were considered a bad omen in imperial times and analysts said interest in the phenomenon may have affected turnover in the morning.

Here are the index moves and top stock moves on both markets by midday-

HONG KONG

* The benchmark Hang Seng Index .HSI was up 0.3 percent at 19,556.67, after scrapping past a 10-month high of 19,608 points, with shares worth HK$41.6 billion changing hands.

* "Fund managers still have a lot of cash on hand so while some of them are taking profits, others that have missed the rally and are underperforming are ready to step in and buy the stocks," said Patrick Yiu, fund manager with CASH Asset Management.

"Recent data shows slight deflation in Hong Kong, so despite the increase in property prices an asset bubble seems unlikely at this point," he said.

* Hong Kong's consumer price index fell for the first time in four years in June, dipping 0.9 percent from a year earlier, but the fall was seen as a correction from high 2008 prices rather than the start of a deflationary spiral.

* Shares in Chinese telecom companies underperformed for a second straight session as slowing user growth weighed.

China Mobile (0941.HK) dropped 0.6 percent while smaller rival China Unicom (0762.HK) shed 1.4 percent. The world's largest wireless network operator has cut its target for third generation network, based on an untested homegrown technology platform, subscriber additions this year, a report in a mainland newspaper said.

* The China Enterprises Index .HSCE, which represents top locally listed mainland Chinese stocks, advanced 0.8 percent to 11,681.36 with insurer China Life (2628.HK) in the lead.

* Solar power stocks soared after China launched an unprecedented and long-awaited plan to offer subsidies for utility-scale solar power projects.

Shares in China Solar (0155.HK) vaulted 17.5 percent while GCL-Poly Energy (3800.HK) gained 2.8 percent, joining the overnight rally in Chinese panel makers on Wall Street. [ID:nPEK125709] In Shanghai, Wuhan Linuo Solar Energy (600885.SS) soared its 10 percent daily limit to 12.13 yuan.

* Chinese real estate developer Franshion Properties (China) (0817.HK) dropped 7.7 percent to HK$2.53 after it said a major shareholder was placing shares worth HK$1.94 billion (US$250 million) at HK$2.52 each to rise fund for future acquisitions and working capital. [ID:nHKG183944]

The stock was the most heavily traded issue in the morning session with 922.9 million shares changing hands.

SHANGHAI

* The Shanghai Composite Index .SSEC ended the morning up 1.85 percent at 3,272.688 points, erasing the previous day's loss as energy shares led the market higher.

* Gaining Shanghai A shares outnumbered losers by 678 to 245, while turnover in Shanghai A shares dropped to 100.0 billion yuan ($14.6 billion) from Tuesday morning's heavy 131.8 billion yuan.

* Oil and coal shares led the rise, with PetroChina (601857.SS) gaining 3.34 percent to 15.16 yuan while Sinopec (600028.SS) surged 7.32 percent to 13.05 yuan. China Shenhua Energy (601088.SS) climbed 6.67 percent to 37.44 yuan.

* One analyst noted optimism over oil refiners' earnings, helping to counter the dampening effect on the market of an initial public offering by China State Construction Engineering Corp (CSCEC), the world's largest IPO so far this year, which is taking subscriptions until Wednesday.

"Institutions bought energy shares, supporting the market and offsetting pressure from CSCEC's large IPO, so it seems the index could hold firm," added Chen Huiqin, an analyst at Huatai China Securities in Nanjing.

* China Life Insurance (601628.SS) gained 1.98 percent to 32.99 yuan after state media reported that its parent company's first-half net profit rose 43 percent to 8.7 billion yuan. [ID:nPEK144519]

* Official statistics showed that 484,799 share trading accounts were opened last week in China, the highest since January 2008, reflecting recent active trade in China's stock markets. (Reporting by Parvathy Ullatil; Editing by Jacqueline Wong)