* HSI +0.1 pct, H-shares -0.7 pct, CSI300 +0.3 pct
* Turnover lackluster before quarter-end, holiday next week
* Aluminum, coal A-shares jump after positive Aug industrial
* Shanghai trade zone counters sink again ahead of launch
By Clement Tan
HONG KONG, Sept 27 China shares rebounded
modestly early Friday after data showed the pace of profit
growth for Chinese industrial firms in August more than doubled
from July, tempering Hong Kong weakness, with coal and aluminum
counters leading gains.
Shares of most companies seen linked with the Shanghai
free-trade zone and listed in the mainland extended losses ahead
of its official launch on Sunday. Still, prices of some remain
more than twice their late August levels.
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings was up 0.3 percent, while the Shanghai
Composite Index inched up 0.1 percent. They are down 1.7
and 1.5 percent on the week, respectively.
The Hang Seng Index inched up 0.1 percent to 23,146.6
points, but the China Enterprises Index of the top
Chinese listings in Hong Kong sank 0.7 percent. Both appeared
headed for their first weekly loss in four, down 1.5 and 2.8
Trading volumes in both China and Hong Kong was lacklustre
ahead of the quarter-end and holidays next week. Markets in the
mainland will shut Oct. 1 to 7 for the National Day holiday,
Hong Kong will be closed on Tuesday.
"Nobody is taking big positions ahead of the long holiday in
the mainland next week," said Jackson Wong, vice-president for
equity sales at Tanrich Securities.
Still, Aluminum Corporation of China (Chalco)
surged by the maximum 10 percent in
Shanghai, spurring a bout of short covering that lifted its Hong
Kong listing by 3.9 percent.
Coal counters listed in the mainland climbed on hopes the
launch of the coal derivative market will help stabilise coal
prices, which have been falling. In Shanghai, Yanzhou Coal
jumped 4.2 percent, while giant China Shenhua Energy
inched up 0.4 percent.
Profits earned by Chinese industrial firms rose 24.2 percent
in August from a year earlier to 483.2 billion yuan ($78.94
billion), compared with July's 11.6 percent annual growth, the
National Bureau of Statistics said on Friday.
The prospect of stabilising coal prices hurt Huaneng Power
, whose shares fell 3.2 percent in Hong Kong
and 1.3 percent in Shanghai.
Shanghai free-trade zone "concept" stocks were again weak as
investors trimmed strong gains ahead of Sunday's launch of the
initiative. The shipping sector was further hurt by the first
fall for freight rates in nine days.
Shares of Shanghai International Port dived 9
percent and were down 18 percent on Thursday and Friday
combined, but remained more than double their Aug. 22 trough.
Beijing Enterprises Water Group jumped 7.1 percent
after saying it would issue 400 million new shares to Malaysia
government-backed Mount Reskin Investments at a 5.1 percent
discount to Thursday's close, raising HK$1.2 billion ($154.75
China Huishan Dairy fell as much as 5.6 percent in
its first trading on the Hong Kong stock exchange, a
disappointing debut after the company priced its initial public
offering at the top of its marketed range.