* HSI +0.1 pct, H-shares -0.1 pct, CSI300 -0.1 pct
* Volumes weak as Communist Party plenum conclusion awaited
* China property sinks after more tightening measures
* China railway jumps, new equipment bids reportedly robust
By Clement Tan
HONG KONG, Nov 11 Shanghai shares broke below a
key technical support level early on Monday, weighing on Hong
Kong markets, with the Chinese property sector hit by another
move from a local government to tame rising home prices.
Volumes were lackluster in both markets as investors awaited
the end of a four-day closed-door policy meeting of the Chinese
Communist Party on Tuesday, for details on its economic agenda
for the next decade.
By midday, the Hang Seng Index was up 0.1 percent at
22,772.4 points, while the China Enterprises Index of
the top Chinese listings in Hong Kong crept down 0.1 percent.
Both had closed last Friday at their lowest in about two weeks.
The Shanghai Composite Index slipped 0.2 percent to
2,102.8 points after earlier dipping below its 100-day moving
average. The CSI300 of the leading Shanghai and
Shenzhen A-share listings inched down 0.1 percent.
"There could be more losses in the A-share market from here,
economic growth is still not strong enough to make a case for a
meaningful return to the large caps," said Cao Xuefeng, a
Chengdu-based analyst with Huaxi Securities.
Investors are also unlikely to take well to more competition
for market liquidity, given recent hawkish comments from China's
premier that the country cannot afford to loosen policy anymore.
About 34.3 billion yuan worth of lock-up share agreements
will expire this week for Ping An Bank, Shanxi
Securities and Qingdao Hanhe Cable, the
official Xinhua news agency reported over the weekend.
On Monday, China Vanke shares sank 2.5 percent
in Shenzhen to its lowest since June after Xinhua reported over
the weekend that the Beijing city government will ban presale of
new homes that cost more than 40,000 yuan per square meter by
the end of the year.
This followed moves by Shanghai and Shenzhen last week to
raise the minimum downpayments for second-home purchases in an
attempt to quell speculative demand as home prices in first-tier
Chinese cities continue to climb.
In Hong Kong, sector outperformers Country Garden
and Shimao Property sank 1.9 and 2.7 percent,
respectively. Shimao has fallen nearly 10 percent from a peak in
October, while Country Garden has lost more than 6 percent.
There were, however, gains for the Chinese railway sector
after the official China Securities Journal reported on Monday
that the second round of bidding for railway equipment contracts
is likely to exceed the first.
China CNR jumped 4.3 percent in Shanghai, while
CSR Corp spiked 4 percent in Shanghai and
1.8 percent in Hong Kong.
Yashili surged 13.3 percent to a record high after
trading in its Hong Kong shares resumed following a three-month
suspension and after parent China Mengniu Dairy Co Ltd
sold down shares to meet Hong Kong listing requirements.
A slew of official October economic data over the weekend
came in broadly in line with expectations, although inflation
climbed to an eight-month high of 3.2 percent, fanning market
fears about tightening.
Market watchers also pointed to producer prices (PPI), which
fell for a 20th consecutive month, as a sign of the fragile
basis of China's economic recovery. PPI dropped 1.5 percent last
month from a year earlier, compared with a fall of 1.3 percent
the previous month.