* HSI flat, H-shares -0.3 pct, CSI300 -0.2 pct
* China shares fall after money rates hike
* Hong Kong shares underperform Asia after Fed decision
* Fu Shou Yuan shares jump 53 pct in Hong Kong debut
By Yimou Lee
Dec 19 China shares surrendered early gains on
Thursday, weighing on Hong Kong markets, as moves by the U.S.
Federal Reserve took a back-seat to wariness among investors
after China's money rates spiked for a second day.
Hong Kong shares underperformed most Asian markets after the
Fed said it would start to trim its stimulus but would keep
interest rates for some time.
At midday, the Hang Seng Index was flat at 23,153.27
points, while the China Enterprises Index of the top
Chinese listings in Hong Kong fell 0.3 percent.
The CSI300 fell 0.2 percent, while the Shanghai
Composite Index was down 0.1 percent at 2,146.38 points
and could be on track for a eighth straight daily loss.
Trading volumes in Shanghai remained weak and were some 20
percent below the 20-day average by midday. Wednesday's level
was the lowest in more than five months.
"The Fed news is absolutely good for the U.S. stock markets,
but it's another story for other markets because some funding
may flow back," said Linus Yip, a Hong Kong-based strategist at
First Shanghai Securities.
"The market confidence is still there, but the hike in
China's money rates has put some pressures and (China markets)
will go into a short to mid-term consolidation," Yip said.
Analysts said investors were disappointed after China's
central bank declined to inject fresh funds during open market
operations. China's benchmark seven-day bond repurchase contract
rose sharply again on Thursday after a similar rise the previous
Chinese financials led losses among industry groups. China's
second-largest insurer Ping An Insurance and China
Minsheng Bank both slipped more than 1 percent in
STRONG TRADING DEBUT
Chinese shipping counters were also weak. China Shipbuilding
Industry Co fell 1.6 percent to a one-month low in
Shanghai, while China Shipping Development dropped
Shares in Fu Shou Yuan International Group Ltd,
China's largest provider of funeral services, soared 53 percent
from its IPO offering price in its Hong Kong trading debut on
Thursday, leading a pack of first-day trading pops in the city.
Among other companies that rose in their debuts on Thursday
were Kerry Logistics, up 3.9 percent, and Consun
Pharmaceutical, which gained 9.9 percent.