(For Shanghai stock market reports, click [.SS])
(Adds Wednesday lunch close, details)
By Rita Chang
HONG KONG, Jan 30 (Reuters) - Hong Kong stocks erased opening
gains on Wednesday as weak mainland stock markets prompted
investors to lock in profits, but oil producer CNOOC Ltd
(0883.HK) advanced a day after previewing its 2008 strategy.
Life underwriter Ping An Insurance (2318.HK) looked set to
post a third-straight decline amid uncertainties about its
fundraising efforts, while rival China Life (2628.HK) paced the
steep losses of its shares traded in Shanghai.
Turnover was thin and by mid-morning, the market had drifted
into negative territory as cautious investors await the results
of the U.S. Federal Reserve policy-setting meeting.
"People are hoping for some direction after the rate cut,"
said Kingston Lin, associate director at Prudential Brokerage,
adding that the weakness in mainland China stock markets were
also a drag.
Lin said he expects the market to end the day on a loss.
Stocks ended the morning near their intraday lows, with the
benchmark Hang Seng Index .HSI down 1.5 percent at 23,918.72.
The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, fell 3.2 percent to 12,954.21.
Mainboard turnover was HK$55.3 billion (US$7.1 billion),
compared to Tuesday morning's HK$56.1 billion.
China Life, the morning's top traded stock and blue chip
loser, tumbled 7.5 percent to HK$28.95.
Ping An slumped 7.1 percent to HK$57.05 amid uncertainties
surrounding its $21 billion capital-raising plan. A report last
week said Beijing would block the life insurer's offer to sell
new shares in Shanghai and convertible bonds [ID:nSHA17747]
CNOOC managed to hold on to a near 1 percent gain to HK$11.16
a day after the oil producer previewed its 2008 strategy. The oil
producer said on Tuesday it will raise capital spending by almost
half in 2008 to produce about 15 percent more and discover enough
reserves to replace all of its output [ID:nHKG328111].
Bourse operator Hong Kong Exchanges and Clearing shares
(0388.HK) slid 5 percent to HK$169 amid declining turnover.
Apparel retailer Esprit Holdings Ltd (0330.HK) slid 5.1
percent to HK$93.4. The Europe-focused apparel retailer racked up
huge gains on Tuesday ahead of its first-half earnings report due
later in the day.
China Oilfield Services Ltd (2883.HK) surged 6.2 percent to
HK$13.8 after saying late on Tuesday it estimated net profit
would increase by about 95 percent in 2007 from a year ago. The
financial data is unaudited and prepared in accordance to Chinese
accounting standards.
Yue Yuen Industrial (Holdings) Ltd (0551.HK), the world's top
maker of sports shoes for brands such as Nike Inc (NKE.N), edged
up 0.4 percent to HK$23.35. The company plans to spin off its
retail business in a Hong Kong IPO this year to raise an
estimated US$800 million, sources familiar with the deal said
[ID:nHKG132918].
(US$1=HK$7.8)
(Editing by Anne Marie Roantree)
