* HSI, H-shares +0.5 pct; CSI300 -0.1 pct
* Shanghai Comp ends up after hitting lowest intra-day since
* China consumer sector hit by weak Tingyi, Parkson earnings
* Ping An Insurance slides, HSBC to sell stake
* Xi's anti-corruption call extends Wuliangye's downward
By Clement Tan
HONG KONG, Nov 19 Hong Kong shares bounced
further on Monday from one-month lows seen last week, helped by
strength in energy counters as higher oil prices and Kunlun
Energy's surprise inclusion in the Hang Seng Index helped buoy
interest in riskier counters.
Onshore Chinese stock indexes ended mixed on the day, with
the Shanghai Composite Index making a late rally after
striking its lowest intra-day level in more than three years
during early afternoon trade. The rally was marked by a sharp
jump in trading volume, albeit off low volumes.
The Shanghai index eventually ended up 0.1 percent at 2,017
points after it had earlier hit 1,999.1.
The CSI300 Index of the top Shanghai and Shenzhen
listings slipped 0.1 percent.
The Hang Seng Index rose 0.5 percent, rebounding
further from a one-month low set last Thursday. The China
Enterprises Index of the top Chinese listings in Hong
Kong also firmed 0.5 percent.
"Everybody's watching whether the Shanghai Composite will
dip below 2,000 points. I think there will be more weakness
ahead, and it's going to weigh on Hong Kong," said Jackson Wong,
vice-president for equity sales at Tanrich Securities.
"Most of the money today is short term, I don't think many
will want to come into the market at this point with so much
uncertainty this week," he added.
Talks to avert a fiscal crisis in the United States and a
meeting of European policymakers discussing more aid for Greece
are among key events that could drive market volatility in the
Despite the jump during afternoon trade, Shanghai volume was
the second-lowest since Sept. 25 and some 23 percent below its
average in the past month.
Hong Kong turnover was also weak, almost 15 percent below
its 30-day moving average.
Shares of China Petroleum and Chemical Corp (Sinopec)
climbed 1.7 percent to its highest in a week in Hong
Kong after Brent crude rose to almost $110 a barrel as
escalating violence between Israel and the Palestinians fuelled
concerns about supplies from the Middle East.
Sinopec was also helped by a Citi upgrade from "neutral" to
"buy" due to an improvement in its domestic refining margins
that could aid an earnings recovery in 2013.
Chinese natural gas provider Kunlun Energy gained
3.1 percent, touching a record high in early trade, after the
Hang Seng Index manager said the Chinese energy firm will become
the 50th component of the benchmark index from Dec. 10.
Limiting gains on the benchmark Hang Seng Index, Ping An
Insurance sank 1.9 percent after HSBC Holdings
confirmed it was in talks to sell its $9.3 billion
stake in China's second-largest insurer, stepping up a programme
by Europe's largest bank to shed non-core parts of its business
to boost profitability.
WEAK EARNINGS HIT CHINA CONSUMER PLAYS
Chinese consumer counters were key sectoral underperformers
after third-quarter corporate earnings from department store
operator Parkson Retail Group and the country's top
instant noodle producer Tingyi Holdings both
disappointed, raising fears that the slowdown in the Chinese
economy is hitting the sector more than expected.
Parkson dived 8.8 percent to its lowest closing level since
mid-September, while Tingyi reversed early gains after it posted
underwhelming earnings at the midday trading break, ending down
In a report on Monday, UBS analysts said Parkson's 42.3
percent year-on-year decline in third-quarter earnings was a
result of slowing sales compounded by an acceleration in store
expansion that led to a sharp increase in related expenses.
"As more department stores report negative SSS (same store
sales), we believe the sector valuation will be at much lower
levels when negative operating leverage emerges," they said in
the same report dated Nov 16.
Investors also unloaded liquor firms which, despite heavy
spending of advertising, could suffer see sales drop as a result
of Beijing's coming anti-corruption drive.
New Communist Party chief Xi Jinping was quoted by state
media as saying on Monday that the party risks major unrest and
the collapse of its rule if corruption is allowed to run
wild. Officials are often gifted bottles of
liquor by people seeking favour.
Chinese premium alcohol producer Wuliangye dived
5.8 percent to its lowest since August 2010, while Kweichow
Moutai, shed 4.6 percent to close at its lowest
since April 25 on fears.
CCTV said it had sold 15.8 billion yuan ($2.5 billion) of
advertising spots for 2013, up 11 percent on 2012 and the most
in 19 years. Chinese media reported that Wuliangye bought 499
million yuan and Moutai 352 million yuan worth of advertisement
slots on CCTV evening news programming in 2013.
Wuliangye's Thursday losses were its worst in eight months.
It is now down 11.3 percent on the year.
Kweichow Moutai is still up more than 10 percent this year,
but has slumped 13.5 percent this month as party leaders
repeatedly warned against the perils of corruption over the
course of the 18th Party Congress that ended last week.