* HSI +0.4 pct, H-shares +0.5 pct, CSI300 +0.3 pct
* Commodities slide after exports have 1st decline in 17
* Chow Tai Fook spikes on strong revenue report
By Clement Tan
HONG KONG, July 10 Hong Kong and China shares
pared gains on Wednesday after Chinese data showed exports fell
for the first time in 17 months in June, stoking fears that
second quarter growth will disappoint.
Commodities and export-related counters underperformed as
investors braced for monthly money supply and loan growth, due
by July 15. Second quarter GDP is due on Monday, as are monthly
urban investment, industrial output and retail sales figures.
While June data met expectations for a $27.1 billion trade
surplus, imports dipped 0.7 percent, versus an expected 8
percent growth, while exports dropped 3.1 percent, far below a
projection for 4 percent growth.
At 0335 GMT, the Hang Seng Index was up 0.4 percent
at 20,730.8, as early gains of almost 2 percent were pared. The
China Enterprises Index of the top Chinese listings in
Hong Kong rose 0.5 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings inched up 0.3 percent, while the Shanghai
Composite Index was up 0.4 percent. They have each
tumbled nearly 20 percent from end-May highs.
"The trade data is a negative, no question about that. But
it's also no real shocker," said Larry Jiang, chief strategist
at Guotai Junan International Securities. "It's not that the
Chinese economy lacks money, it's about efficient allocation and
the money supply data will hopefully offer some clues."
"At this point, it is very difficult to persuade people to
return to the market. Investors will be prepared to pay a
premium for shares of companies that demonstrate earnings that
are more immune to the cyclical winds in China," Jiang added.
Shares of China Rongsheng, the country's largest
private shipbuilder, tumbled almost 5 percent to another record
low. Port terminal operator Cosco Pacific fell 3
percent in Hong Kong.
Coal counters reversed early gains in Hong Kong, with China
Shenhua Energy and China Coal each down 0.8
percent. Jiangxi Copper dived nearly 5 percent in Hong
Shares of Chow Tai Fook jumped 9 percent after the
jewellery retailer posted a 63 percent rise in first-quarter
revenue from a year earlier, mainly due to a surge in gold
products sales following a sharp fall in gold prices.
The Hong Kong property and Macau gambling sectors were also
mostly stronger as investors rotated out of China beta sectors,
with Asia insurance giant AIA Group again strong, up
more than 1 percent. New World Development was up 2
percent, while Sands CHina climbed 3.4 percent.