* HSI, H-shares +0.5 pct; CSI300 flat, Shanghai Comp -0.1
* Comments at parliament meeting stoke growth worry
* Property A-shares up on hopes home-price falls will be
* Tencent hits record after China Unicom cooperation
By Clement Tan
HONG KONG, March 6 China shares fell to their
lowest levels in a week early Thursday, then rebounded and
boosted Hong Kong markets as property stocks gained on hopes
steps will be taken to limit mainland home-price declines.
From now until March 13, mainland markets could be affected
by comments and policy announcements made at China's annual
parliamentary meetings, which started on Wednesday.
On Thursday morning, for example, comments from the
country's finance minister stoked worries that lower growth
rates than the stated 7.5 percent target for 2014 would be
tolerated. That briefly accelerated losses in growth-sensitive
sectors other than property.
"People are talking a lot whether we will actually achieve
the target growth rate, given Beijing's determination to reform,
tighter liquidity and lower fixed asset investment," said Cao
Xuefeng, a Chengdu-based analyst with Huaxi Securities.
"That's why the markets will remain vulnerable to comments
streaming out of the ongoing meetings in Beijing for any more
clarity on how the government plans to execute its policy
goals," Cao added.
The Shanghai Composite Index went into the midday
trading break down 0.1 percent after earlier falling as much as
1.1 percent. The CSI300 of the largest Shanghai and
Shenzhen A-share listings was flat.
The Hang Seng Index rose 0.5 percent to 22,688.3
points, while the China Enterprises Index of the leading
offshore Chinese listings in Hong Kong also climbed 0.5 percent.
Chinese property developers listed in the mainland climbed
as investors cheered a China Business News report quoting
People's Bank of China advisor Chen Yulu as saying China should
start preparing for falling property prices in smaller cities,
with an eye to keeping prices stable for the next 10 years.
China Vanke spiked 4.7 percent in Shenzhen and
has now erased an 11 percent tumble between Feb. 19 and Feb. 25.
Poly Real Estate rose 2.6 percent in Shanghai,
helping the Shanghai property sub-index climb 1.2
In Hong Kong though, China Resources Land sank 0.8
percent, Greentown China was off 1.7 percent and
Longfor Property 1.9 percent.
The Chinese vice-minister for housing and urban development
said on Thursday that the government will strive to increase
housing supply in cities where home prices are rising the most.
Environmental plays saw some of the day's more robust gains
after China Premier Li Keqiang pledged on Wednesday to wage
"war" on pollution in his opening address to the National
Alternate energy providers China Longyuan and
Huaneng Renewables each spiked more than 3 percent in
Hong Kong. Beijing Enterprises Water climbed 3.3
percent, while China Everbright International jumped
Tencent Holdings gained 1.9 percent to another
record high after announcing plans to cooperate with China
Unicom. The Chinese internet giant announced earlier
this week that it would open its WeChat payment program to all