* HSI -0.6 pct, H-shares -0.6 pct, CSI300 -1.2 pct
* China property sector down on concerns about price cuts
* Environment-protection firms surge on steps to curb
(Updates to midday)
By Grace Li
HONG KONG, June 4 China shares sank on
Wednesday, led by losses in property counters as investors
fretted that soft demand for new homes in the mainland could cut
prices and hurt developers.
Hong Kong shares slipped from Tuesday's five-month high as
some investors took profit after recent strong gains.
At midday, the Hang Seng Index and the China
Enterprises Index of the top Chinese listings in Hong
Kong both were down 0.6 percent. The Hang Seng was at 23,161.43
The CSI300 of the leading Shanghai and Shenzhen
A-share listings shed 1.2 percent, while the Shanghai Composite
Index was off 0.9 percent at 2,019.22 points.
Mark To, head of research at Wing Fung Financial Group, said
the improving Chinese economy is helping boost sentiment about
the Hong Kong market.
But on Tuesday, when mainland media reports cited soft
property demand in the mainland, property developers fell.
China Fortune Land, the top CSI300 percentage
loser, tumbled 7 percent. China Vanke lost 2.3
percent, even though the country's biggest residential property
developer said late Tuesday its January-May contract sales were
up 16.2 percent from a year earlier.
Hong Kong-listed peers followed, with China Overseas Land &
Investment down 2.2 percent and China Resources Land
down 1.8 percent.
Faced with slowing sales and funding issues for some
property developers, China's real estate market has softened
this year after last year's stellar performance. Prices rose at
their slowest pace in 11 months in April.
No improvement was seen in May and record-low turnover in
major cities during the past holiday weekend added to concerns
that an oversupply in the housing market will result in more
price cuts, mainland media reported.
On Tuesday, environmental protection-related counters rose
sharply. Combustion Control Technology surged the
maximum allowed 10 percent and CNlight gained almost
China is considering an absolute cap on its CO2 emissions
from 2016, a senior adviser to the government said on Tuesday.
On Friday, the central government released stricter emission
standards, which take effect in July.
Inner Mongolia Yili Industrial Group rebounded
1.5 percent from Tuesday's big drop after the company said all
its factories which produce infant formula had secured licenses,
denying a report on Tuesday that four of its subsidiaries failed
to make the latest list of qualified infant formula producers.
(Editing by Richard Borsuk)