* HSI +0.9 pct, H-shares +1.2 pct, CSI300 +0.6 pct
* China banking A-shares hit by spike in money rates
* Weigao Group surges 31 pct after returning to growth in Q3
* Key earnings Thursday: CRE, Sun Art Retail, Country Garden
By Clement Tan and Alice Woodhouse
HONG KONG, Nov 14 Hong Kong shares rebounded
from two-month lows early on Thursday, led by Chinese Internet
giant Tencent Holdings and healthcare equipment provider
Shandong Weigao Group as investors cheered their robust
Gains in mainland China markets were limited by weakness in
the banking sector, roiled by a sharp spike in short-term money
rates after the central bank drained funds from the open market
for a second week running.
At midday, the Hang Seng Index, which had closed on
Wednesday at its lowest since Sept. 4, was up 0.9 percent at
22,660.4 points. The China Enterprises Index of the top
Chinese listings in Hong Kong rose 1.2 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings edged up 0.6 percent after earlier hitting its
lowest intra-day level in nearly three months. The Shanghai
Composite Index climbed 0.5 percent.
All four benchmark indexes had on Wednesday suffered their
biggest losses in at least two months after the initial
communique from the conclusion of a key Communist Party policy
meeting had disappointed expectations for more details about
"It's looking a bit quiet today after big losses yesterday,
weak volumes are probably exaggerating losses in banking
A-shares from the spike in money rates," said Zhang Qi, a
Shanghai-based analyst with Haitong Securities.
Mid-sized Chinese lenders were among the leading drags on
mainland indexes. In Shanghai, China Minsheng Bank
sank 1.4 percent to a three-month trough, while Industrial Bank
fell 1.8 percent to its lowest since early
The People's Bank of China refrained from injecting funds at
its second of two regular weekly open market operations on
Thursday, resulting in a net drain of funds from the interbank
market for a second week.
The rise in rates stems more from worries about further
liquidity tightening as opposed to an actual shortage of cash,
traders said. Investors are still uncertain how aggressively the
PBOC is going to attack the excess cash that has aggravated
inflation and pushed up property prices.
In Hong Kong, Chinese medical device company Shandong Weigao
Group Medical Polymer rocketted 30.6 percent to reach
a 10-week high after its positive third quarter earnings spawned
upgrades from UBS and Credit Suisse analysts.
Investors cheered comments from its chief financial officer
on an analyst call that the company should now comfortably meet
2013 guidance of 20 percent growth after a restructuring of its
Gains on the day helped Weigao shares swing from a 10
percent loss on the year to a 17.3 percent gain.
Shares of Tencent Holdings, which had closed on
Wednesday at its lowest since Sept. 9 ahead of its earnings
announcement, jumped 5 percent as investors cheered its 35
percent gain in online gaming revenue.
Key earnings announcements due later on Thursday include
China-focused supermarket operators Sun Art Retail,
China Resources Enterprises and Chinese property
developer Country Garden.