HK shares ease after rally; China drops on IPO concerns

* HK shares slide 0.7 pct, but post third weekly gain

* China stocks down 3 pct, breaching key 3,000-point level

* Poly (Hong Kong) jumps 17 pct on new investor, injection
(Updates to close)

By Donny Kwok, Lu Jianxin and Jacqueline Wong

HONG KONG, Sept 18 (Reuters) - Hong Kong shares ended 0.67
percent lower on Friday, a pull back from the previous session's
13-month high on concern that gains were overextended, but
accelerating optimism for an economic recovery limited the
decline.

Ample liquidity also gave hope for further gains, allowing
local stocks to ignore a sharp decline in the mainland market,
brokers said.

Banks and financial stocks remained in focus in Hong Kong
with BOC Hong Kong (2388.HK) down 7.11 percent at HK$17.24 after
reaching a 13-month high in the previous session. ICBC (1398.HK)
lost 1.12 percent to HK$6.16.

But index-heavy weighted HSBC (0005.HK) extended its previous
gain to edge up 0.27 percent to HK$91.20. The stock surged 4
percent to its year high on Thursday.

"Upside momentum is building again after today's
consolidation, and riding on the U.S. dollar's weakness," said
Conita Hung, head of equity research at Delta Asia Financial.
"Further upside can be expected when unfrozen funds from IPOs
return to the market next week, adding to the already high market
liquidity."

The benchmark Hang Seng Index .HSI retreated 145.06 points
to 21,623.45, climbing more than 1,000 points in the last two
sessions., and ending the week up 2.2 percent in the third
consecutive weekly gain.

The China Enterprises Index .HSCE, which represents top
locally listed mainland Chinese stocks, eased 0.42 percent to
12,614.57.

Turnover dropped to HK$73.3 billion (US$9.5 billion) against
HK$84.66 billion on Thursday.

Chinese developer Poly (Hong Kong) (0119.HK) surged 17.2
percent to a more than two-year high of HK$9.15, its highest
since July 2007, before ending at HK$9.02, still up 15.49
percent. Poly said China Investment Corporation would buy HK$409
million worth of its new shares and the company would buy HK$2.7
billion worth of assets from its parent.

Kingboard Laminates (1888.HK) fell 1.45 percent to HK$5.45.
The laminates maker said after the market closed that its major
shareholder was selling 120 million shares at a discount at
HK$4.92-HK$5.06 each, raising up to $78.3 million.

Shun Tak Holdings (0242.HK) fell 6.69 percent to HK$6.14
after the property-to-transport investor said it planned to issue
convertible bonds to raise about HK$1.395 billion to fund new
investment opportunities and as working capital.

Top Asian refinery Sinopec (0386.HK) fell 1.01 percent to
HK$6.85 after a company official said its Tianjin plant aimed to
start up its new 200,000 barrel-per-day (bpd) refining facility
around mid-December or later, a delay from earlier plans.

SHANGHAI FALLS ON UPCOMING NEW LISTINGS
China's key stock index fell more than 3 percent in late
trade on Friday, led by steel counters, as a slew of upcoming new
share issues sparked profit-taking.

Analysts said a huge number of new shares hitting the market
had tilted the balance to an oversupply against demand, boding
ill for the market's near-term trend. [ID:nSHA68299]

Regulators have mainly been talking up the market, but their
strong push of so many new share issues into the market
undermined official support for stock trading, analysts said.

Companies raised a combined 133 billion yuan in July and
August and analysts see 50 billion yuan in the pipeline in
September.

The Shanghai Composite Index .SSEC tumbled as much as 3.9
percent to 2,940.83 points before closing at 2,962.667, down 3.19
percent from Thursday's close and below the psychologically
important 3,000-point level. It fell 0.9 percent this week,
snapping gains in the previous two weeks.

"The market is under the double pressure of heavy new supply
and profit-taking," said Qian Qimin, deputy head of research at
Shenyin and Wanguo Securities in Shanghai. "It has the potential
to fall further. Near-term support is at the half-year moving
average" now at 2,835 points.

The index crumpled by a fifth in August -- its second-worst
monthly performance in 15 years -- prompting a government pledge
to support the market.

Losing Shanghai A shares overwhelmed gainers by 787 to 143,
while turnover rose slightly to an active 181 billion yuan ($27
billion) from 178 billion yuan on Thursday.

The steel sector was hit hard after local media reported that
the United States might impose extra duties on Chinese-made steel
tube, sparking fresh worries over a possible escalation of
Sino-U.S. trade disputes. [ID:nN16126315]

Wuhan Steel (600005.SS) closed down 5.77 percent, while
industry leader Baoshan Iron and Steel (600019.SS) dropped 4.19
percent.
(Editing by Chris Lewis)