HK, China shares ease as banks, developers fall

* Hong Kong, China shares ease on weak U.S. data

* China banks fall on report Beijing may adjust reserves

* Power counters gain after China raises tariff rates
(Updates to midday)

By Jun Ebias and Claire Zhang

HONG KONG/SHANGHAI, Nov 20 (Reuters) - Shares in Hong Kong
and Shanghai fell on Friday, tracking losses in other Asian
markets as weak U.S. data prompted investors to dump riskier
assets, while commodities eased on a firm U.S. dollar.

The benchmark Hang Seng Index .HSIC slid 0.54 percent, or
121.57 points, to 22,521.59 at midday. Turnover was HK$33.7
billion ($4.3 billion), versus midday Thursday's HK$38.7 billion.

In China, the Shanghai Composite Index .SSEC ended the
morning down 0.44 percent at 3,306.025 points, heading for a 3.7
percent gain for the week that would mark a third consecutive
weekly rise.

"The U.S. dollar has rebounded a bit and that triggered
profit taking pressure on the commodity and equity markets," said
Ben Kwong, chief operating officer at KGI Asia.

The market is also consolidating after the index hit the
23,000 mark twice this week, a level not seen since July 2008.

"The consolidation period will probably extend in the next
few weeks in the absence of fresh incentives. There could be a
rally again, maybe in the middle of December," Kwong said.

Developers Hang Lung Properties (0101.HK) fell 1.61 percent
and Sun Hung Kai Properties (0016.HK) lost 1.28 percent on profit
taking. Developers gained on Thursday on news Hong Kong will
auction two residential sites in December to ease land supply.

The China Enterprise Index .HSCE of top locally listed
mainland Chinese stocks slipped 0.76 percent to 13,368.18.

Aluminum Corp of China (2600.HK) was down 1.37 percent. The
increase in power rates in China is expected to raise production
costs for aluminium smelters such as Chalco. [ID:nPEK268089]

Chinese lenders ICBC (1398.HK) slid 1.61 percent and Bank of
Communications (3328.HK) slipped 1.03 percent. China may adjust
banks' reserve requirement ratios next year as the country's
economy steadies, a former Chinese central bank official was
quoted as saying in the Shanghai Securities News. [ID:nSHA303855]

In Shanghai, Bank of China (601988.SS) shed 0.46 percent to
4.35 yuan while ICBC (601398.SS) lost 1.26 percent to 5.48 yuan.

GOME Electrical Appliances (0493.HK) was 2.2 percent lower.
The firm said it had repurchased 498.4 million yuan ($72.99
million) worth of bonds due 2014 over-the-counter.

Bucking the trend, BYD Co Ltd (1211.HK) rose 5.41 percent
after saying its automobile business had maintained strong
growth.

China Tontine Wines (0389.HK) and Longfor Properties
(0960.HK), which debuted on Thursday, extended their gains.
Tontine advanced 2.7 percent and Longfor was up 4.12 percent.

GCL-Poly Energy Holdings (3800.HK) rose for a second day and
was up 5.6 percent. The firm rose on Thursday after it said it
would sell a 20 percent stake to China Investment Corp.

China Strategic (0235.HK) fell 1.70 percent. The Taiwan
government is raising concerns that the buyers of AIG's (AIG.N)
Nan Shan Life insurance unit, China Strategic and Primus
Financial, are backed by China-sourced funds, complicating the
approval process behind the $2.15 billion deal. [ID:nHKG225332]

SHANGHAI DIPS

Gaining Shanghai A shares outnumbered losers by 476 to 404,
while turnover remained heavy at 102 billion yuan ($15 billion) ,
down slightly from Thursday morning's 104 billion yuan.

Analysts said market sentiment remained upbeat with a strong
outlook for economic recovery and corporate earnings growth,
while the pullback in bank shares was modest.

"A rise in bank reserve ratios next year would not be a
surprise. The banking sector is just showing a mild reaction to
the news," said Li Wenhui, senior analyst at Huatai Securities in
Nanjing.

"The market is not lacking for money at the moment, with
funds from household savings and hot money (from overseas
speculators). Overall valuations have not reached an overheated
level and the index could continue rising for the rest of
November," he said.
The power sector outperformed, with Huaneng Power (600011.SS)
up 1.41 percent at 8.65 yuan and Yunnan Wenshan Electric Power
(600995.SS) climbing 5.62 percent to 9.59 yuan. Beijing raised
retail power prices for non-residential users. [ID:nPEK267457]

Huatai's Li added, however, that power shares had already
outperformed on expectations of higher prices so the news would
offer only a limited boost to the sector.

Auto shares were firmer, with top Chinese carmaker SAIC Motor
(600104.SS) rising 0.60 percent to 25.31 yuan. The Shanghai
Securities News reported that China may adopt more aggressive
incentives to bolster auto sales, including a sales tax exemption
for cars with engine sizes of 1.4 litres or less.
(Editing by Jacqueline Wong)