* HSI flat, H-shares -0.1 pct, CSI300 +0.6 pct
* 'Big Four' China banks lackluster despite higher state
* China property H-shares slide after home-price data
* Macau casino sector jumps on prelim gambling revenue
By Clement Tan
HONG KONG, June 18 Hong Kong shares ended little
changed after two days of gains with investors selling recent
outperformers and turnover low as markets braced for the U.S.
Federal Reserve policymaking meeting beginning later on Tuesday.
Mainland China markets eked slim gains, but short-term
funding costs remained sky high despite a negligible cash
injection by the People's Bank of China. The cash squeeze could
stay until early July as the quarter-end looms.
The Shanghai Composite Index inched up 0.1 percent
on the lowest volume in a month, while the CSI300 of
the leading Shanghai and Shenzhen A-share listings rose 0.6
The Hang Seng Index closed flat at 21,225.88 points,
and the China Enterprises Index of the top Chinese
listings in Hong Kong slipped 0.1 percent. Turnover was some 10
percent below its average in the past 20 sessions.
Both Hong Kong indexes are languishing near their lowest
since the third quarter last year. The H-share index has
corrected nearly 15 percent from a May peak, largely after
Federal Reserve chairman Ben Bernanke said it may "take a step
down" in bond purchases in coming months.
"This correction has created some opportunities for
investors with a longer time horizon, but it's still quite a
tough sell right now, with most just waiting to see what the Fed
will do," said Wang Ao-chao, UOB Kay Hian's Shanghai-based head
"Some money may flow from India and Southeast Asia into
China equities at some point later this year, but at this
moment, there are just too many sources of uncertainty," Wang
Most Chinese property developers listed in Hong Kong
surrendered Monday's share advances after official data showed
mainland home prices rose at the fastest pace this year in May,
though the rate of monthly gains slowed.
China Overseas Land dropped 1.7 percent and China
Resources Land fell 1.2 percent. CR Land announced
after markets shut on Monday that its chairman was stepping
Their rivals listed in the mainland held onto gains after
Monday's stiff losses. China Vanke was up 1.1
percent in Shenzhen and Poly Real Estate rose 1.4
percent in Shanghai.
GCL-Poly Energy plunged 12.4 percent to HK$1.84
after a China Investment Corporation unit sold 1.2 billion
shares - 7.75 percent of the solar energy firm's share capital -
at HK$1.87 each.
Shenzhou International Group also saw heavy
volumes, tumbling 5.3 percent after unveiling plans to sell 69
million new shares at HK$22.40 apiece, a 9.1 percent discount to
The Macau casino sector outperformed on positive preliminary
gambling revenue data. Galaxy Entertainment spiked 6
percent to a record high, while MGM China surged 7.3
Chow Tai Fook slid 1.7 percent ahead of its final
earnings for the financial year ended March 31. Now down more
than 30 percent in 2013, the stock is trading at 12 times
forward 12-month earnings, an 11 percent discount to its
historical median, according to Thomson Reuters StarMine.
China state investor Central Huijin's move to increase its
A-share stakes in the country's "Big Four" banks failed to
ignite markets in the mainland and Hong Kong. Their H-share
listings were all down on Tuesday.
In Shanghai, Agricultural Bank of China (AgBank)
, China Construction Bank (CCB) and
Industrial and Commercial Bank of China (ICBC) had
gains of less than 1 percent, while Bank of China
sank 0.7 percent.