* HSI -0.5 pct, H-shares -1.4 pct, CSI300 -0.8 pct
* China indexes set for biggest weekly gain since February
* China coal counters extend losses on lower coal prices
* Sun Hung Kai Properties sink after earnings underwhelm
By Clement Tan
Sept 13 Hong Kong and China shares fell on
Friday, led by Chinese cyclical counters from banks to materials
as investors booked profits after robust gains earlier in the
At midday, the Hang Seng Index was down 0.5 percent
at 22,836.4 points, while the China Enterprises Index of
the top Chinese listings in Hong Kong shed 1.4 percent.
The indexes are still set for a second-straight weekly gain,
up 1 and 1.5 percent, respectively.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings fell 0.8 percent, while the Shanghai Composite
Index shed 1 percent after closing on Thursday at its
highest in three months.
On the week, they are up 5.5 and 4.3 percent, set for their
biggest weekly gain since the week that ended Feb. 1. Losses on
Friday also knocked the Shanghai benchmark off its most
technically overbought level since July 2009.
"I think we are due for more gains and we are recommending
clients start accumulating more beta counters in the Chinese
banking and property sectors," said Francis Cheung, CLSA's
managing director of Hong Kong-China strategy.
"The rally so far has been mainly short covering and some of
the long money is beginning to return. So many were so bearish
on China earlier this year, so even a return to equal weight
will help lift the market," Cheung added.
Still, on Friday some of these beta counters were among the
biggest index drags. China Minsheng Bank shed 2.9
percent in Hong Kong and 4.3 percent in Shanghai.
Materials counters were broadly weaker. Zijin Mining
sank 3.2 percent in Hong Kong and 1.5 percent in Hong
Kong as gold prices head towards their worst week in two months.
China coal counters extended losses as thermal coal stocks
at China's top coal port dropped to a three-month low and
aggressive sales tactics set to keep a lid on any rebound in
Beijing had also unveiled comprehensive measures to tackle
air pollution on Thursday that involve slashing coal
China Shenhua Energy Co Ltd tumbled 1.7
percent in Shanghai and 4 percent in Hong Kong. Power producers
jumped on lower coal prices, with Huaneng climbing 3.5
percent in Hong Kong.
Sun Hung Kai Properties shed 1.8 percent after
closing on Thursday at their highest since Aug. 19. The world's
second-largest property firm by market value posed a 14 percent
fall in full year underlying profit, lagging forecasts while
setting a weaker sales target for the next year.
Sino Biopharmaceutical rebounded 1 percent as
trading resumed on Friday, after the company said it was not
aware of any investigation involving anybody connected to the