* HSI -0.9 pct, H-shares -1.2 pct, CSI300 -1.4 pct
* HK property unwinds strong gains last week on Fed taper
* China property sinks on reported property tax
* China banks sink on reported financial reform
By Clement Tan
HONG KONG, Sept 24 Hong Kong shares sank further
from a near eight-month high on Tuesday as investors took
profits from last week's strong gains after comments from top
U.S. Federal Reserve officials aggravated uncertainty on the
timing of its stimulus reduction.
Mainland Chinese markets underperformed most of Asia after a
report in official media reignited fears that a nation-wide
property tax is back on the table, putting growth-sensitive
counters on the defensive.
At 0246 GMT, the CSI300 of the leading Shanghai
and Shenzhen A-share listings was down 1.4 percent, while the
Shanghai Composite Index sank 1 percent. Both had on
Monday recorded their best daily gain in two weeks on their
return from a four-day trading break.
The Hang Seng Index, which closed on Thursday at its
highest since Feb. 4 after the Fed stunned markets by
maintaining its monthly stimulus, shed 0.9 percent to 23,154.8
points. The China Enterprises Index of the top Chinese
listings in Hong Kong lost 1.2 percent.
"We are seeing an unwinding of strong gains from last week,
particularly in the Hong Kong property sector," said Linus Yip,
a strategist with First Shanghai Securities. "But with the China
macro picture improving, investors should probably look to
accumulate Chinese banking shares on weakness."
The Chinese banking sector was among the biggest drags on
benchmark indexes in both Hong Kong and China on Tuesday.
Industrial and Commercial Bank of China (ICBC)
slipped 0.5 percent each in Hong Kong and
The official China Securities Journal said in a front-page
editorial on Tuesday that financial reforms may figure
prominently at a key policy meeting in November. The report
mentioned the establishment of a deposit insurance mechanism, a
move seen as a precursor to a more flexible interest rate regime
that could hurt net interest margins for banks.
The China property sector sank after the official China
Securities Journal reported on Tuesday that the central
government is organising a new round of training in October, to
prepare tax officials to introduce property taxes.
China Vanke dipped 2.8 percent to a two-week low
in Shenzhen, while Poly Real Estate sank 3.1 percent
in Shanghai and China Resources Land shed 1.5 percent
in Hong Kong.
Hong Kong property developers weakened after comments from
several top Fed officials, including the influential New York
Fed President William Dudley, added to uncertainty about the
withdrawal of the Fed's asset-buying programme.
Sino Land shares dipped more than 2 percent on
Tuesday and have now lost about 50 percent of its nearly 9
percent surge last Thursday. Henderson Land lost
nearly 3 percent.
China Modern Dairy shed nearly 2 percent after it
announced a joint venture with KKR & Co and Chinese
private equity firm CDH Investments to invest $140 million in
two large dairy farms in the mainland.
Strong sales of the new iPhone models prompted Apple Inc
to issue a rosier financial forecast, lifting the
shares of some of its suppliers.
Goertex climbed 3.5 percent in Shenzhen, while
FIH Mobile jumped 3.4 percent in Hong Kong.