* HSI +0.03 pct, H-shares -0.5 pct, CSI300 -0.3 pct
* CSI property subindex down 1.7 pct on slowdown fears
* Hong Kong-listed mainland telcos fall on venture questions
By Natalie Thomas
BEIJING, May 9 Mainland stocks fell on Friday
and Hong Kong was flat, leaving major indexes on course for
weekly losses as fears about a slowdown in China continue to
hurt investor confidence.
On the day, mainland stocks were trimmed by inflation data
that implied tepid demand, while volatility in telecoms shares
was a drag on the Hong Kong indexes. A sell-off in Great Wall
Motor shares impacted mainland and Hong Kong indexes.
At midday, the Hang Seng Index was flat at 21,837.12
points, and down 1.9 percent on the week. The China Enterprises
Index of the top Chinese listings in Hong Kong was down
0.5 percent for the day.
The CSI300 index of the largest Shanghai and
Shenzhen A-share listings was off 0.3 percent on Friday, as was
the Shanghai Composite Index. The Shanghai benchmark was
at 2015.27 points, down 0.9 percent on the week.
Data for data for April showed China's consumer prices rose
at their slowest rate in 18 months, while producer deflation
persisted, underscoring sluggish demand in the world's
"In terms of the overall environment, the economy is not
very good and stimulating policies are not very strong, said Du
Changchun, an analyst at Northeastern Securities in Shanghai.
"In the short term, unless we see some new stimulus or
economic policy, I don't think there will be much flexibility
for strong market performance," Du said.
Property concerns also dragged on the market, with the CSI
property subindex down 1.7 percent, as more firms
exhibit signs of stress as the once red-hot sector cools.
Friday's losses were led by Yangao Group Ltd, down
6.3 percent, while China Fortune land Co Ltd
declined 2.0 percent.
News that Great Wall Motor Co Ltd,
would halt delivery of its newly-launched Haval H8 due to a
quality issue triggered a sell-off in the stock, with Hong
Kong-listed shares in China's biggest maker of sport utility
vehicles down 15.9 percent, while losses on the mainland hit the
10 percent daily trading limit.
In Hong Kong, shares of the three mainland mobile phone
carriers erased most of Thursday's gains as they try to forge an
infrastructure joint venture.
China Unicom Hong Kong Ltd lost 3.3 percent and
China Telecom Corp Ltd slid 2.4 percent. China Mobile
Ltd was down 0.7 percent.
"This is a very difficult move for the whole sector. Who's
going to take control and whether the existing network will be
transferred to the new company is still a question mark," said
Steven Leung, sales director at UOB Kay Hian in Hong Kong.
(Editing by Richard Borsuk)