HK, China shares slide; Poly (HK) shines

* HK shares slide 0.3 pct on consolidation after rally

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

* China stocks decline on IPO concerns
(Updates to midday)

By Donny Kwok and Claire Zhang

HONG KONG, Sept 18 (Reuters) - Hong Kong shares edged down
0.29 percent on Friday, a pull back from a 13-month high in the
previous session on concern that gains are overextended, but
accelerating optimism for an economy recovery limited the
decline.

China stocks fell as sentiment was damped by expectations of
a large supply of new IPO shares but the benchmark stock index
still hoovered above the key resistance mark of 3,000 points.

Banks and financial stocks remained a focus in Hong Kong with
BOC Hong Kong (2388.HK) down 6.7 percent at HK$17.32 after
reaching a 13-month high in the previous session. ICBC (1398.HK)
edged down 0.2 percent to HK$6.22.

But index-heavy weighted China Mobile (0941.HK) gained 1.4
percent, while HSBC (0005.HK) extended its previous gain to edge
up 0.22 percent to HK$91.15. The stock surged 4 percent to its
year high on Thursday.

"It was a consolidation so far this morning, not even an
adjustment after the recent rally," said Patrick Yiu, a director
at CASH Asset Management. "The underlying tone is still solid as
the market remains awash with liquidity and that may imply the
stock can rise further when these funds look for opportunities."

The benchmark Hang Seng Index .HSI slid 62.64 points to
21,705.87 at midday after surging more than 1,000 points in the
last two trading days.

The China Enterprises Index .HSCE, which represents top
locally listed mainland Chinese stocks, edged down 0.10 percent
to 12,668.15.

Turnover totalled HK$35.76 billion ($4.6 billion).
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, after the
Chinese developer said China Investment Corporation would buy
HK$409 million worth of its new shares and Poly would buy HK$2.7
billion worth of assets from its parent. The stock steadied at
HK$9.04 at midday, up 15.8 percent.

Shun Tak Holdings (0242.HK) fell 4.3 percent to HK$6.30 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) eased 0.43 percent 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.

Wheelock and Co Ltd (0020.HK) fell 3.7 percent and unit Wharf
(Holdings) Ltd (0004.HK) was down 1.9 percent after saying they
had succeeded in bidding for land for commercial and residential
development in China's Tianjin city for 641 million yuan.

SHANGHAI DOWN ON IPOS

China's key stock index slipped 1.22 percent on Friday, with
metal shares weak, damped by expectations of a large supply of
new IPO shares although the launch of 15 mutual funds lent
support.

The Shanghai Composite Index .SSEC ended the morning at
3,022.809 points, but was headed for a 1.1 percent weekly advance
so far, its third straight weekly gain. The index suffered its
second-biggest monthly drop in August in more than 15 years.

Metals shares were hit by profit-taking, with Zhongjin Gold
(600489.SS) down 3.36 percent to 60.75 yuan as gold retreated
from 18-month highs. The shares gained 8 percent earlier this
week.

Analysts said there were clear signs of stable government
policy ahead of the National Day Holiday, therefore more share
supply may not impact the index immediately. The index could test
its 60-day moving average at 3,088 points.

The official China Securities Journal on Friday reported that
15 mutual funds were launched on Sept. 17, with one of them
raising 2 billion yuan ($293 million) on the first day.

The Shanghai Securities News also forecast 15 mutual funds
may bring 50 billion yuan into the stock market after the
National Day holiday.

"The upside can be expected to reach 3,200 points supported
by the mutual funds," said Zhang Xiang, chief strategist at Guodu
Securities in Beijing.

But he added that in the run-up to the week-long National Day
holidays on Oct. 1, the index may fluctuate in a narrow range, as
there were signs Beijing wanted to keep the market stable.

A huge supply of IPO shares to be listed on an additional
market in Shenzhen and a record amount of shares to be freed from
lock-up in October are adding to the supply threat.
[ID:nSHA68299]

Tourism-related shares outperformed, with Beijing Jingxi
Tourism Development (000802.SZ) climbing 4 percent to 18.97
yuan.

CNTIC Trading (600056.SS) raced up by its 10 percent daily
limit to 19.10 yuan after saying it was ready to prepare an
anti-virus drug to tackle the H1N1 flu.

The soaring number of Influenza A (H1N1) cases in China over
the past three weeks indicates that the pandemic will be at its
peak in the autumn and winter, as predicted by experts.

Bank shares were soft, with Shanghai Pudong Development Bank
(600000.SS) losing 2.8 percent to 20.9 yuan after announcing a
capital-raising plan. Analysts forecast it may need to raise up
to 19 billion yuan besides a 15 billion yuan sale of new domestic
A shares in a private placement late in August.
(Editing by Chris Lewis)