* HSI +0.2 pct, H-shares -0.4 pct, CSI300 -0.1 pct
* China set for first weekly loss in three, volumes weak
* GOME, Suning spike on hopes of home appliance subsidies
* Jewellers sink on reported gold price manipulation probe
By Clement Tan
HONG KONG, July 19 Hong Kong shares struggled on
Friday morning with China also tepid, but demand for recently
battered coal miners helped to offset weakness in mainland
banking and property sectors.
By midday, the Hang Seng Index was up 0.2 percent at
21,377.4 points, while the China Enterprises Index of
the top Chinese listings in Hong Kong fell 0.4 percent. On the
week, they are up 0.5 and 0.3 percent, respectively. The indexes
have moved in a 300-500 point range for more than a week.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings edged down 0.1 percent, while the the Shanghai
Composite Index inched up 0.2 percent. On the week, they
are now down 1.4 and 0.6 percent, respectively, and due for
their first weekly loss in three.
"Benchmark-wise, it's been quite a flat week in Hong Kong,
but there was some strong rotation out of some sectors that have
outperformed into laggard ones," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
China Shenhua Energy jumped 3 percent
in Hong Kong to its highest in about a month and is now up 11.4
percent this week, set for its best weekly showing in nine
months. Its A-share listing climbed 1.1 percent in Shanghai.
But Shenhua's H-share listing is still down more than 30
percent on the year and still trading at a 39 percent discount
ot its forward 12-month earnings multiple, according to Thomson
China urged local governments late on Thursday to speed up
spending this year's budget to support economic growth but said
it would keep overall policy stable and focus on pushing through
Beijing is reluctant to take broad action to stem a slowdown
in the economy, such as relaxing monetary conditions, but
analysts said there had been signs of more targeted measures in
recent days, such as expanded lending to small businesses and
the agricultural sector.
Shares of China's top home appliance retailers surged on
Friday after a report in an official newspaper raised hopes of a
new round of subsidies for energy-saving home appliances that
could be introduced as soon as the fourth quarter of this year.
Suning Commerce Group Co Ltd spiked nearly 8
percent in Shenzhen, while GOME Electrical Appliances Holding
Ltd jumped 7 percent in Hong Kong, also helped by a
positive profit alert the company issued for the first half of
But most Chinese property and banking firms endured losses
as China's short-term money rates inched up on Friday morning,
with traders looking to see what the central bank does next week
when listed companies are expected to ramp up demand for cash to
meet dividend payments due before the month-end.
China Vanke slid 2.6 percent in Shenzhen, while
Poly Real Estate dived 3.4 percent in Shanghai and
China Overseas Land shed 2.8 percent in Hong Kong as
concerns about financing for the sector linger.
Shares of jewellery retailers dived after the official
People's Daily reported on Friday, citing unidentified sources,
that China's National Development and Reform Commission is
probing price manipulation by some gold shops in Shanghai.
In Hong Kong, Chow Tai Fook Jewellery Group Ltd
dived 3.2 percent and Chow Sang Sang Ltd sank 0.8