* HSI +0.1 pct, H-shares -0.4 pct, CSI300 flat
* Chinese financial and property sectors weak on liquidity
* Window dressing by funds boost telecom, gambling stocks
* Tencent up 2.3 pct to record high, govt investment plan
By Yimou Lee
HONG KONG, Dec 30 China shares shed most of
their early Monday gains, capping Hong Kong markets, after a
government pledge to keep liquidity and financial markets stable
next year failed to assure investors.
Premier Li Keqiang said China will keep liquidity at an
appropriate level in 2014 to maintain the stability of financial
markets and the broader economy, according to a statement
published on the website of the State Council late on Sunday.
By midday, the CSI300 index of the largest mainland shares
was flat, while the Shanghai Composite Index
edged up 0.1 percent at 2,102.54 points. Both swung between
negative and positive territory in the thin morning trade.
The Hang Seng Index was up 0.1 percent at 23,261.59
points and appeared on track for a fourth straight daily rise.
The China Enterprises Index of the top Chinese listings
in Hong Kong fell 0.4 percent.
"In light trading, funds are trying to window dress and
heavy-weighted cyclical and financial stocks are weighing down
the market," said Jackson Wong, Tanrich Securities'
vice-president for equity sales in Hong Kong.
"The overnight rate is still a concern and whether the
People's Bank of China will do reverse repos this week will be
another key," Wong said.
Li's statement came after cash crunches in China's money
markets early this month. The central bank initially did not
make large cash injections to help banks cope with elevated cash
demand at the year-end.
"We will stick to the prudent monetary policy, keep
appropriate liquidity, realize reasonable growth in credit and
total social financing and keep prices largely stable," Li was
quoted as saying.
Chinese financial and property counters led losses among
industry groups. China Vanke, the country's largest
developer by sales, fell 1.7 percent in Shenzhen, while rival
SOHO China shed 2.7 percent in Hong Kong.
China Life and China Construction Bank <
both dropped 1 percent in Hong Kong.
Bank of China sank 2.3 percent to its four-month
low in Shanghai, while mid-sized lender China Minsheng Bank
sank 1.2 percent in Shanghai and 0.6
percent in Hong Kong.
Traders said "window dressing" buying by fund managers to
improve the appearance of portfolios ahead of the half-year gave
some sectors a boost, with Chinese telecom and Macau gambling
stocks particularly strong.
Galaxy Entertainment was up 1.5 percent and Sands
China rose 1.1 percent.
Telecom sectors were furthered boosted after China said
investment in that industry is expected to top 350 billion yuan
($57.7 billion) in 2014.
Tencent Holdings rose 2.3 percent to another
record high on Monday, while China Telecom gained 0.8