* HSI -0.6 pct, H-shares -0.5 pct, CSI300 -0.2 pct
* Profit-taking cools outperforming tech sector
* Geely sinks after stake sale by Goldman Sachs arm
* Environmental counters rise on hazardous China pollution
By Clement Tan
HONG KONG, Oct 9 Hong Kong shares sank early
Wednesday, with investors taking some profit on the
outperforming technology sector as the U.S. fiscal impasse
sapped confidence that the world's largest economy will avert a
Chinese internet giant Tencent Holdings fell 2.6
percent after closing at a record high on Tuesday. Gainers for
the day were most Chinese property developers and some
alternative energy counters.
At midday, the CSI300 of the biggest Shanghai and
Shenzhen A-share listings slipped 0.2 percent, while the
Shanghai Composite Index inched down 0.1 percent.
The Hang Seng Index was down 0.6 percent at 23,047.1
points, while the China Enterprises Index of the top
Chinese listings in Hong Kong sank 0.5 percent. Both have been
in a tight trading range for almost two weeks.
"There's not much fresh flows, just a whole lot of
rotational movement," said Jackson Wong, Tanrich Securities
vice-president for equity sales. "It's going from tech to clean
energy and some Chinese property names today,"
Losses for Tencent on Wednesday tracked steep overnight
losses for sector rivals listed in New York. The stock is still
up 67 percent for the year, compared with the 1.7 percent gain
for the Hang Seng benchmark.
Geely Auto sank 3.4 percent after the private
equity arm of Goldman Sachs sold its remaining stake in the
Chinese automaker at a discount of up to 7 percent, Thomson
Reuters IFR reported.
There were strong gains for China Longyuan and
Huaneng Renewables, moving 5.2 and 2.1 percent
respectively in heavy volumes after September wind power farm
output in the mainland was higher than expected.
Citi analysts said in a note on Wednesday that new policies
in the next two quarters may help improve grid efficiency.
Lingering hazardous levels of pollution in China also helped
Beijing Jingneng Clean Energy climb 4.7 percent to its
highest since late July, while waste management firm China
Everbright International rose 3.1 percent.
The Chinese property sector gained in Hong Kong after China
Vanke, the country's largest developer by sales,
followed the lead of Country Garden in reporting solid
September sales figures.
But while Country Garden shares in Hong Kong rose 1.6
percent, investors in the mainland took profit on the property
sector after strong Tuesday gains. Vanke sank 1.9 percent in
Strength in the Chinese banking sector helped moderate
losses in the A-share market after the official Shanghai
Securities News reported on Wednesday that China's four major
banks issued new loans of 276 billion yuan ($45 billion) in
September, the third-highest monthly total this year.
The same newspaper also reported on Wednesday that China's
banking regulator plans to more than triple the minimum
registered capital requirement for new wholly-owned foreign
banks and joint-venture banks.
A batch of official China economic data could start this
week. September figures for money supply and loan growth are due
by Oct. 15, trade data on Oct. 12, inflation on Oct. 14, with
third quarter GDP due Oct. 18.