* HSI +0.3 pct, H-shares -0.2 pct, CSI300 +0.2 pct
* Li & Fung spikes after it says 2013 performance 'solid'
* Daphne leads gains in footwear sector after Nomura upgrade
* Two Macau casinos at record highs again on bullish Citi
By Clement Tan
HONG KONG, Jan 7 Strength in the shares of
exporter Li & Fung and China-focused footwear retailers helped
secure a slim gain for Hong Kong's benchmark index early on
Tuesday, while mainland Chinese markets moved off five-month
lows in muted volumes.
In the mainland, investors awaited the pricing of the first
A-share initial public offering approvals since October 2012 for
signs of how the market will react to a flood of new listings at
a time of tightening money supply.
A total of 29 IPOs have been approved. The first two Chinese
companies to publish fundraising targets plan to raise a
combined 1.02 billion yuan ($167.7 million) as their IPOs come
to the market later this week.
"There's not been so many IPOs coming to the A-share market
at the same time in recent memory, so people are waiting to see
how a credit-starved market take to that," said Jackson Wong,
Tanrich Securities vice-president for equity sales.
At midday, the Hang Seng Index was up 0.3 percent at
22,762.3 points. The China Enterprises Index of the top
offshore Chinese listings in Hong Kong slipped 0.2 percent to a
The Shanghai Composite Index and the CSI300
of the largest Shanghai and Shenzhen A-share listings,
which closed on Monday at their lowest since August, each
inched up 0.2 percent.
While new shadow banking regulations again put Chinese
financial counters under pressure, there were gains for
Shanghai-related counters after the State Council announced
adjustments to operating guidelines for the city's free trade
Shanghai International Port jumped by the 10
percent limit and free trade zone operator Waigaoqiao
rose nearly 6 percent. Bestv New Media
spiked 7.7 percent after the Ministry of Industry and
Information Technology started soliciting opinions on ways to
deregulate the Shanghai FTZ's telecommunication sector.
Other reform moves in the financial sector crimped index
gains. After a fresh bid by China's cabinet to curb shadow
banking, the banking regulator announced a pilot scheme allowing
the establishment of three to five private banks in a move that
would create more competition for existing lenders.
China Construction Bank sank 1.7
percent in Shanghai and 0.7 percent in Hong Kong. Ping An
Insurance slid 0.9 percent in both Shanghai
and Hong Kong.
Footwear retailer Daphne International surged 11.3
percent to HK$3.74 after Nomura analysts upgraded their rating
to "buy" from "reduce", and raised their target price by nearly
90 percent to HK$6.20.
Li & Fung soared 7.3 percent in robust volumes
after the global supply chain operator described its 2013
performance as "solid" while adding that it has established a
vendor support service unit as part of its business plan for the
next three years.
The Macau casino sector was again strong. Citi analysts
added to the bullish chorus, believing 2014 will be a watershed
year for Macau and U.S. gambling stocks and setting revenue
growth estimates for the Chinese territory at 20 percent.
Galaxy Entertainment climbed 4.9 percent and Sands
China 4 percent, taking both to record highs.