* HSI -0.3 pct, H-shares +0.2 pct, CSI300 +0.5 pct
* Tencent down 19 percent since March 3 peak
* CSI300 property sub-index stabilises
By Natalie Thomas and Chen Yixin
SHANGHAI, April 4 Hong Kong shares were mixed on
Friday, with gains in Chinese shares listed in the city
overshadowed by tech losses and weighed by a sharp fall in
Internet giant Tencent Holdings.
Mainland shares were up slightly by midday, but
uncertainties over first quarter earnings results and concerns
over the resumption of initial public offerings (IPO) left
By midday, the Hang Seng Index was down 0.3 percent
at 22,507.58 points. The China Enterprises Index of the
top Chinese listings in Hong Kong gained 0.2 percent.
The CSI300 index of the largest Shanghai and
Shenzhen A-share listings was up 0.5 percent, while the Shanghai
Composite Index was up 0.4 percent at 2,050.10 points.
Shares in index heavyweight Tencent fell 4.6
percent by the midday break as the stock followed U.S. listed
counterparts, including Facebook Inc and SINA Corp
into negative territory, on growing concerns that the
sector as a whole is over-valued. Tencent was down as much as
6.3 percent in morning trade.
The Internet firm has lost 19 percent over the last 20 days
of trading after reaching a peak of HK$646.00 on March 3.
Investors in Tencent are particularly sensitive to anything
that might affect the stock while the People's Bank of China
reviews its lucrative third party payment platform, analysts
"At this moment investors will be more cautious if the
overall valuations in this sector seem to be too high. That's
why after the tumbling in the U.S. tech stocks, the markets
reacted on this news immediately," said Castor Pang, head of
research at Core Pacific-Yamaichi in Hong Kong.
Software company Kingsoft also saw its share price
fall for a second day, losing 4.9 percent by midday after it
announced it would seek a U.S. listing for its Security software
subsidiary Cheetah Mobile Inc.
H-shares had another positive day, with the sub-index on
course for its best weekly performance since Feb. 21 on the news
earlier this week that discussions are under way between the
Hong Kong and Shanghai bourse to allow mainland investors to buy
Hong Kong traded shares via Shanghai.
Mainland shares returned to positive form after property and
banking shares stabilised, with almost all 16 listed banking
shares gaining ground. Hua Xia Bank Co, Ltd and
Industrial Bank Co Ltd were both up 1.1 percent by
the lunch break.
The CSI300 property sub-index gained 0.5 percent
by midday, with Hua Yuan Property Co, LTD jumping
8.9 percent and Yeland Group Co, LTD rising 8.2
But analysts said any major gains overall were unlikely
while investors await news on IPO resumption.
"Even though some have been speculating on certain hot
spots, the index still has little potential to rise further due
to these uncertainties," said Cao Xufeng, head of research at
Huaxi Securities in Chengdu.
(Additional reporting by Alice Woodhouse; Editing by Jacqueline