* HSI +0.3 pct, H-shares +0.3 pct, CSI300 -0.5 pct
* Chinese shares at to one-month lows amid tight liquidity
* Trading of Kunlun Energy suspended, sources say chairman
By Yimou Lee
Dec 17 Hong Kong shares edged higher on Tuesday,
with gains capped by weak China stocks, as many investors
awaited a decision on bond-buying at a U.S. Federal Reserve
policy meeting starting later in the day.
China shares, which have fallen the past five days, slipped
again as investors remained concerned about tight liquidity
before the resumption of new share offerings next month.
By midday, the Hang Seng Index was up 0.3 percent at
23,184.56 points. The China Enterprises Index of the top
Chinese listings in Hong Kong also rose 0.3 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings> fell 0.5 percent, while the Shanghai Composite
Index was down 0.6 percent at 2,148.05 points. Both sank
to one-month lows.
"Investors remain quite cautious ahead of the Fed meeting
and will stay on the sideline for the next one or two days,"
said Ben Kwong, chief operating officer of KGI Asia, a Hong Kong
The caution stems from waiting for the Fed to decide, at a
two-day meeting, whether to start reducing its $85
billion-a-month bond-buying. The decision will be known before
Asian markets open on Thursday.
"Investors are very picky nowadays and will only chase
stocks that have stories or news behind them," Kwong said,
adding that retail and gambling plays will continue to be top
picks ahead of the Christmas and New Year holidays.
The China Banking Regulatory Commission, setting the
regulatory tone for the year ahead, on Tuesday called on banks
to properly manage their liquidity conditions and head off
shadow banking risks in 2014.
State-owned enterprises in Shanghai rose on Tuesday after
China announced plans to push reforms and open up competition in
state-controlled industries. Shanghai Ganglian E-Commerce
Holdings Company Ltd jumped 7 percent, while
Shanghai Jielong Industry Group Corp Ltd surged by
the maximum 10 percent limit in Shanghai.
Macau gambling plays continued to their recent rally, with
Sands China rising 2.2 percent to a record high.
Shares of Kunlun Energy were suspended on
Tuesday, the Hong Kong Stock Exchange said, without providing
details. Sources told Reuters that a top executive of its parent
company PetroChina , who is also chairman
of Kunlun, had been detained in connection with a graft probe.
Shares in Great Wall Technology Company Ltd
jumped 34 percent on a privatization offer from Chinese
state-owed China Electronics Corp.