* HSI -0.1 pct, H-shares flat, CSI300 -0.9 pct
* Real estate developers' access to financing in spotlight
* Financials, property shares turn weaker
* Shamshui, BBMG dive after profit warning
By Clement Tan
HONG KONG, July 18 China shares underperformed
Asia in mid-morning trade on Thursday, weighing on Hong Kong
markets, with the financial and property sectors hit by concerns
over the availability of financing for real estate developers.
The pace of China's monthly home price increase slowed for a
third straight month in June though the year-on-year gain was
the strongest this year, underlining the challenges facing
Beijing's near four-year-old campaign to tame housing inflation.
By 0313 GMT, the CSI300 of the leading Shanghai
and Shenzhen A-share listings was down 0.9 percent, while the
Shanghai Composite Index slid 0.6 percent. Both broke
below chart support that held for a week, pointing to more
losses in the near term.
The Hang Seng Index slipped 0.1 percent, with the
China Enterprises Index of the top Chinese listings in
Hong Kong also flat. Bourse turnover in Hong Kong stayed weak.
"It's not just property-specific anymore," said Lee Wee
Liat, BNP Paribas head of Asia property. "Fears are growing that
the liquidity shock a few weeks ago may be starting to trickle
into the sector."
The official China Securities Journal reported on Thursday
that financing requirements for listed property developers will
be gradually liberalised and loosened, subject to conditions.
This follows a similar Xinhua news report on Wednesday.
BNP's Lee added that mainland media reports alleging
inappropriate corporate behavior by state-owned conglomerates
have raised concerns how that may potentially affect state-owned
real estate developers.
Shares of China Vanke, the country's largest
real estate developer by sales, declined 1.6 percent in
Shenzhen. In Hong Kong, China Overseas Land and China
Resources Land each fell nearly 2 percent.
Mid-sized lenders China Minsheng Bank
and China Merchants Bank skidded 2.9 and
1.8 percent, respectively in Shanghai. Their Hong Kong-listed
shares also suffered losses on the day.
Cement producers China Shanshui and BBMG Corp
tanked after they warned of declining profits late on
Wednesday, pointing to a likely divergence at their upcoming
interim earnings reports due in August. Three other cement
producers had issued positive profit alerts last week.
On Thursday, Shanshui slumped nearly 10 percent, nearing its
June 25 low, which was also its lowest since April 2009. BBMG
lost 1.9 percent, while sector giant Anhui Conch Cement
slid 2.1 percent in Hong Kong.
But there were gains for China Resources Power,
rising 2.3 percent after the company said on its website that it
considers recent media reports alleging corruption in the
company to be defamatory and that it had adversely affected the
reputation of its leadership.