HK, China shares edge up after mixed data

(Updates to midday)

HONG KONG/SHANGHAI, June 11 (Reuters) - Hong Kong and China shares inched up on Thursday amid mixed economic data for May, with robust investment spending bolstering hopes for the recovery although imports and exports were weak.

China's urban fixed-asset investment rose 32.9 percent in the first five months of 2009 from a year earlier, compared with a 30.5 percent increase in the first four months. [ID:nBJB000621] China's exports fell 26.4 percent in May from a year earlier, while imports fell 25.2 percent. [ID:nBJB000622]

"This (fixed-asset investment growth), together with robust private consumption, will continue to support stronger domestic demand growth, which will be more than sufficient to offset the weakness in exports," said Yu Song & Helen Qiao, analysts with Goldman Sachs, in a note to investors on Thursday.

Here are the index moves and top stock moves by midday-

HONG KONG

* The benchmark Hang Seng Index .HSI was up 0.3 percent at 18,849.32.

* The China Enterprises Index .HSCE of top mainland companies had risen 0.8 percent to 11,116.53 led by a 2.6 percent jump in China Construction Bank (0939.HK), which has been a laggard in the recent rally.

* Turnover rose to HK$47.7 billion ($6.15 billion) from HK$39.2 billion by midday Wednesday.

* Local property stocks were beaten down on worries about rising interest rates, which hit Wall Street shares on Wednesday. [ID:nN10462992]

Changes in interest rates in Hong Kong take place in tandem with those in the United States owing to the peg between the local currency and the greenback.

* Top developer Sun Hung Kai Properties (0016.HK) was down 1.8 percent, while Li Ka-shing's property flagship Cheung Kong (0001.HK) dropped 2 percent. Sino Land (0083.HK) slipped 2 percent, while Hang Lung Properties (0101.HK) gave up 3.3 percent.

* Sinopec Shanghai Petrochemical (0338.HK) jumped 8.1 percent to HK$2.82 after the refiner said it expected to return to profit in the first half of 2009 as raw materials prices dropped following a fall in international crude oil prices.

The company said the profitability of its oil refining operation improved following fuel tax reforms in China and its product prices stabilised after sharp declines.

* China's top juice maker China Huiyuan Juice Group (1886.HK) climbed 2.5 percent after its controlling shareholder confirmed he had no intention of cutting his stake in the company following the exit of a key investor.

Earlier this month U.S. private equity fund Warburg Pincus indicated it would redeem convertible bonds it held in the juice maker, sending the stock plunging.