* HSI +0.7 pct, H-shares +1.2 pct, CSI300 +0.4 pct
* HSI, HSCE have worst week in nearly two months
* China coal shares jump on hopes of rising physical prices
* CRE soars to highest in a year after Tesco JV deal
* Li Ning spikes 9.2 pct ahead of H1 earnings
By Clement Tan
HONG KONG, Aug 9 Hong Kong shares ended up on
Friday helped by Chinese coal companies on hopes of rising
physical prices and solid China data for fixed asset investment
and factory output, but the market endured its worst week in
nearly two months.
Mainland Chinese markets reversed losses after a slew of
economic data on Friday. They also posted their strongest weekly
gain in four, outshining their offshore peers for a second week
in a row.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings and the Shanghai Composite Index each
ended up 0.4 percent. On the week, they gained 1.7 and 1.1
percent, their respective best since the week that ended July
The China Enterprises Index of the top Chinese
listings in Hong Kong slid 1.4 percent this week, despite
gaining 1.2 percent on Friday. The Hang Seng Index shed
1.7 percent on the week, despite a 0.7 percent rise on the day.
This was their first weekly loss in seven weeks. Turnover on
Friday in Hong Kong markets neared 2013 lows.
"Yes, the China data did give markets a positive jolt, but
the effect wore out quite quickly," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
"At this point, investors are only very selectively coming
back into the market. Any companies able to report an
improvement in their results in this sluggish economic
environment will be of particular interest," Wong added.
China Resources Enterprises soared 7.8 percent in
its biggest daily gain in a year after entering a joint venture
with Tesco that will see CRE take 80 percent, helping
the state-owned enterprise expand its market share in the
hypermart sector in the mainland.
Shares of Chinese sporting brand Li Ning surged 9.2 percent
to its highest close in more than two months ahead of its
interim earnings announcement after markets shut on Friday, with
hopes high it will follow the lead of rival ANTA Sports
in reporting easing inventory woes.
In Hong Kong, China Coal Energy spiked 10.3
percent, while China Shenhua Energy jumped 6.1 percent
on signs that coal prices may finally rebound as independent
power producers stock up on coal in the next few weeks before a
scheduled rail maintenance, traders said.
The official People's Daily reported on their website on
Thursday that coal producers such as Jizhong Energy
and Yanzhou Coal have started raising
China's industrial output rose 9.7 percent in July, above
expectations, while fixed-asset investment, an important driver
of economic activity, rose 20.1 percent in the first seven
months from the same period last year, the National Bureau of
Statistics said on Friday.
This came after official data in the morning showed China's
consumer inflation steadied in July although factory-gate
deflation persisted for a 17th month, pointing to monetary
policy on hold as Beijing tries to arrest a slowdown that has
run for more than two years.
Robust trade data on Thursday had raised hopes that China's
economy may be stabilising after two years of slowing growth.
Snack maker Want Want China reversed early gains
to finish flat after data showed food inflation jumped 5 percent
in July from a year ago, sparking fears that could hurt the