* HSI +0.1 pct, H-shares -0.7 pct, CSI300 -0.1 pct
* H-shares down on weak exports
* Hong Kong Jewellery down on weak earnings
By Natalie Thomas and Chen Yixin
SHANGHAI, April 10 Hong Kong stocks steadied at
midday after early losses, while China shares listed in the
territory drifted lower over more signs of a slowdown in the
world's second-largest economy.
Shares on the mainland were also down slightly after China's
top economic planning agency said that the country has less and
less room to rely on policy tools to support the economy as it
tries to arrest a protracted slowdown this year.
By midday, the Hang Seng Index was up 0.1 percent at
22,874.25 points. The China Enterprises Index of the top
Chinese listings in Hong Kong dropped 0.7 percent.
The CSI300 index of the largest Shanghai and
Shenzhen A-share listings eased 0.1 percent, while the Shanghai
Composite Index fell 0.1 percent to 2,104.25 points.
In Hong Kong, investors sold off H-shares in the morning,
after customs data released early on Wednesday showed a 6.6
percent year-on-year fall in exports in March, missing market
expectations for a 4 percent rise.
Imports also slipped 11.3 percent, providing further
evidence of a contraction in the mainland economy.
"We are seeing profit-taking, especially on the export data
which was worse than expected and people are using this as an
excuse to take some profit off the table," said Jackson Wong,
Tanrich Securities vice president of equity sales in Hong Kong.
China losses centred around property after the National
Development and Reform Commission (NDRC) said in a report that
property debt may cause systemic financial risks, sparking
worries over the funding situation in China's real estate
The CSI300 property sub-index slumped 1.6
percent by midday, with China Vanke Co Ltd, the
country's largest listed real estate developer, losing 2.2
Analysts were not overly concerned about the risks from the
"The government is just expressing its concern, which may
spark worries, but the property companies still can find ways to
raise money," said Cao Xuefeng, head of research at Huaxi
Securities in Chengdu.
Hong Kong Jewellery was also down after Chow Tai Fook
reported results below expectations showing same store
sales growth in the fourth quarter fell in Hong Kong and Macau,
leading the stock to shed 6.5 percent.
The results led the overall jewellery sector down with
smaller rival Luk Fook easing 5.8 percent, King Fook
down 4.4 percent and Emperor Watch & Jewellery Ltd
off 3.3 percent.
Shares in Cathay Pacific jumped 3.0 percent,
helped by the news that it would open a new route between Hong
Kong and Manchester airport in the UK, and what
analysts say is the company's relatively low valuation relative
to other Hong Kong blue chips.
(Additional reporting by Alice Woodhouse in Hong Kong; Editing
by Jacqueline Wong)