* HSI +0.4 pct, H-shares +1.2 pct, CSI300 -0.5 pct
* Chart resistance caps H-share gains, volumes still robust
* China Life Insurance leads non-banking financials' gains
* Guangzhou property curbs hit Chinese property sector
By Clement Tan
HONG KONG, Nov 19 China shares retreated from a
month high early on Tuesday, limiting rises in Hong Kong
markets, as benchmark indexes ran into chart resistance after
recent strong gains from investors cheering Beijing's ambitious
The Chinese property sector was hit by fresh measures to
manage soaring prices in Guangzhou after data on Monday showed
average home prices in the southern city surged 20.5 percent in
October from a year earlier.
At midday, the Hang Seng Index rose 0.4 percent to
23,747.2, just shy of the year's intra-day high at 23,944.7
points. The China Enterprises of the top Chinese
listings in Hong Kong climbed 1.2 percent, stymied by chart
resistance at March highs around 11,562 points.
The CSI300, which had closed on Monday at its
highest since Oct. 22, was down 0.5 percent. The Shanghai
Composite Index slipped 0.1 percent. If losses hold,
this would be their first in four sessions.
"We are seeing a consolidation of the strong rally in the
financial sector in the last few days," said Zhang Qi, a
Shanghai-based analyst with Haitong Securities.
"More gains are likely from here, but opinion is still very
split whether this consititutes a re-rating of the China
market," Zhang added.
The Hang Seng A-H Index bounced off a January
2011 low, suggesting H-shares are now trading at its biggest
premium over A-share in nearly two years.
While A-share investors took profit on some of the
outperforming brokerages, mid-sized banks and baby product
counters, the price action in the H-share market was more mixed.
Citic Securities climbed another 2.2
percent in Hong Kong, while slipping 0.4 percent in Shanghai.
China Minsheng Bank rose 1.3 percent in
Hong Kong, while sinking 1.7 percent in Shanghai.
In Hong Kong, Goodbaby International fell nearly
1.5 percent from a one-month high, while Yashili International
dipped 1.7 percent from a record high and Chinese
dairy giant Inner Mongolia Yili Group dived 3.1
percent from a three-week high in Shanghai.
Property developers were also weaker. China Resources Land
dipped 2.2 percent in Hong Kong, while Vanke
sank 1.2 percent in Shenzhen.
But Chinese insurers were broadly stronger as investors
continued to cheer planned financial deregulation in the
mainland. China Life Insurance jumped 5.2
percent to its highest since February in Hong Kong and 1.2
percent in Shanghai.
The official Securities Times, citing comments from a
prepared speech that China's top securities regulator will
deliver at an event later on Tuesday, reported on its website
proposed initial public offering reforms do not mean a
relaxation of regulatory requirements, while the conditions are
still "not mature" to revive plans for an international board.
Investors had rewarded Beijing on Monday for its ambitious
reform plan, with onshore indexes posting its biggest daily gain
in two months, while offshore Chinese shares in Hong Kong
produced its largest percentage rise in nearly two year.
On the earnings front, GOME Electrical Appliance
rose 1.4 percent after posting a 12.5 percent growth in third
quarter sales from a year earlier. But Tingyi Holdings
shares fell 2.2 percent as investors took profit after it
delivered a better-than-expected quarterly net profit.
CLP Holdings rose 0.9 percent after agreeing to
jointly purchase Exxon Mobil Corp's Hong Kong power
business for $3.4 billion with state-owned China Southern Grid.