* HSI -0.4 pct, H-shares -0.8 pct, CSI300 -1.4 pct
* China April home price data dampens property sector
* Financial sector down on stricter interbank lending rules
(Updates to midday)
By Grace Li and Chen Yixin
HONG KONG/SHANGHAI, May 19 China shares fell on
Monday as financials and property stocks fell following stiffer
regulations on interbank lending and more evidence of cooling
momentum in the property market.
Hong Kong shares also declined with losses mainly seen in
the property and energy sectors as investors took profit on
gains from last week.
By midday, the Hang Seng Index was down 0.4 percent
at 22,627.27 points. The China Enterprises Index of the
top Chinese listings in Hong Kong fell 0.8 percent.
The CSI300 of the leading Shanghai and Shenzhen
listings shed 1.4 percent, while the Shanghai Composite Index
lost 1.1 percent to 2,004.41 points.
Chinese banks were the biggest drag for mainland markets in
the morning session, following tougher rules on interbank loans
announced late on Friday.
Beijing is tightening its grip on interbank lending with
more expansive rules that include capping the size and maturity
of loans, a move to defuse risks in shadow banks and better
support the real economy. [ID: nL3N0O22I8]
"This is the major reason for today's fall, which hurt not
only banking shares, but the whole economy. That is because the
off-balance sheet business meets some demand for social
financing," said Du Changchun, an analyst at Northeastern
Securities in Shanghai.
The finance index slipped 1.7 percent in the
morning, with almost all banks declining. Among the top losers,
Industrial Bank Co Ltd dropped 2.7 percent and China
CITIC Bank Corporation Limited was down 1.9 percent.
The Chinese property sector was left weaker by data on
Sunday that showed average new home prices slowed to a near
one-year low in April. That added to concerns about the weakness
of the property market and raised questions about what
policymakers can do if prices start to fall too sharply.
The CSI property sub-index shed 1.4 percent
after jumping 2.5 percent last week. China Fortune Land Co Ltd
was down 6.7 percent and Yango Group Co Ltd
fell 4.4 percent.
In Hong Kong, China Resources Land Ltd lost 2.2
percent, while China Overseas Land & Investment Ltd
slid 1.8 percent.
Weakness in the consumer staples sector also added to Hong
Kong's losses, with Belle International Holdings Ltd
down 2.7 percent.
Want Want China Holdings Ltd was down another 1.8
percent after shedding 6.4 percent last Friday. Nomura
downgraded its shares to neutral in a research note to clients
on Monday, saying recent price hikes and competitors' increased
promotions affected the company's Hot-kid milk sales.
China Travel International Investment Hong Kong Ltd
lost 3.1 percent after its Chairman Wang Shuaiting was
put under investigation as part of a corruption probe into China
(Reporting By Grace Li; Editing by Jacqueline Wong)