* HSI +1 pct, H-shares +0.9 pct, CSI300 -0.6 pct
* Brokerages lead reversal in A-shares on reported fee cuts
* Chow Tai Fook jumps ahead of interim earnings
* Geely, Sunac slip, but end higher than stake sale price
By Clement Tan
HONG KONG, Nov 29 Hong Kong shares posted their
first gain in four days on Thursday after a prominent U.S.
lawmaker raised hopes of a deal to resolve the U.S. fiscal
policy standoff, though turnover remained weak, pointing to
fragile confidence in the market.
But onshore Chinese stocks slipped to a fourth-straight
loss, with brokerages leading a reversal of midday gains after
local media reported key industry players may cut commission
The Hang Seng Index rose 1 percent to 21,922.9
points, erasing losses in the first three days of the week,
while the China Enterprises Index of the top Chinese
listings rose 0.9 percent.
The CSI300 Index of the top Shanghai and Shenzhen
listings shed 0.6 percent, while the Shanghai Composite Index
fell 0.5 percent, lingering at its lowest closing levels
since January 2009.
This is the first day this week that Hong Kong markets held
onto gains, unaffected by a sluggish A-share market on the day.
Shanghai volumes neared two-month lows. While turnover in
Hong Kong hit a three-week high, it was swelled by two block
deals involving Chinese automaker Geely and Sunac
"It's not the best time to be making big positional changes
now. Most investors are waiting for policy guidance on the
structural reforms the Chinese leadership has been talking a lot
about," said Alan Lam, Julius Baer's Greater China equity
Lam said sectors such as Chinese property and
Internet-related names such as Tencent Holdings
present greater earnings clarity in the near to medium term.
On Thursday, Tencent rose 0.7 percent, recovering some
losses in the first three days of the week.
It is now up 63.7 percent on the year, compared to the 18.9
percent gain on the Hang Seng Index and the China Enterprises
Index's 5.6 percent rise.
China Resources Land, one of two pure China
property components on the Hang Seng Index, ended up 1.4 percent
after earlier testing its highest intraday level in more than
three years. It is now up 60.3 percent on the year.
The Chinese banking sector was among the biggest index
movers in Hong Kong, also recovering some losses made earlier in
the week. China Construction Bank rose 1.9 percent,
while Industrial and Commercial Bank of China gained
Bucking broader market strength on the day, Chinese
automaker Geely Automobile declined 1.1 percent to HK$3.54,
above the HK$3.30 to HK$3.40 per share price range in Goldman
Sachs Principal Investment Area's $262 million selldown.
Property developer Sunac China Holdings lost 2.1 percent to
HK$4.75, also above the HK$4.42 to HK$4.50 per share range that
Bain Capital priced its offer, which was up to 8.9 percent
discount off its Wednesday closing price.
PLAYING CHINA STRUCTURAL REFORMS
In their preview of the Chinese stock markets for 2013,
Goldman Sachs strategists said less volatility in China's GDP
growth will see the market shift focus from cyclical to
structural reform plays.
They reiterated mass market consumption as a theme for the
new year, expecting it to be supported by a policy focus on
safety nets and a reduction of wealth disparity.
But a strong move against corruption by China's new
leadership would be negative for some consumer discretionary
names, said Julius Baer's Lam. Luxury brands such as Chow Tai
Fook, could suffer.
Chow Tai Fook, the China-focused jewelery
retailer, which is the world's biggest by market cap, jumped 5.4
percent ahead of its interim earnings. It is up 13.6 percent
After markets closed, Chow Tai Fook posted a bigger than
expected 33 percent fall in six-month profit, hurt by slower
economic growth in China, higher operating costs and losses on
Chinese brokerages suffered stiff losses on the day, largely
driven by a selldown of the sector in the afternoon.
The 21st Century Business Herald newspaper reported on its
website that there has been some discussion by key players in
the brokerage industry of a reduction in broker commission fees.
Citic Securities ended down 2.8 percent in Hong
Kong and 4.4 percent in Shanghai. Brokers accounted for six of
the top 10 drags on the CSI300 Index.