* HSI +0.3 pct, H-shares -0.5 pct, CSI300 -0.9 pct
* Tencent jumps after strong earnings, share split
* China property shares fall as investors took profit
* Energy, telecommunication sectors pull down H-shares
(Updates to midday)
By Grace Li and Chen Yixin
HONG KONG/SHANGHAI, May 15 China shares fell on
Thursday as investors took profit on property and nickel shares,
which had produced solid gains this week.
Hong Kong's main index eked out a rise, lifted by tech
heavyweight Tencent Holdings Ltd, which posted
better-than-expected first quarter results, while H-shares were
weighted down by the energy and telecommunication sectors.
At midday, the Hang Seng Index was up 0.3 percent at
22,649.91 points. If thy index stays in positive territory,
Thursday will produce a sixth straight daily gain.
The China Enterprises Index of the top Chinese
listings in Hong Kong fell 0.5 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings fell 0.9 percent, while the Shanghai Composite
Index was down 0.7 percent at 2,032.79 points.
"There is no reason to support the index rising too much as
the fundamentals in China's economy still haven't improved,"
said Du Changchun, an analyst at Northeastern Securities in
The CSI300 property subindex, which climbed the
past three days, declined 1.4 percent in the morning session.
China Vanke Co Ltd fell 0.8 percent, Poly Real
Estate Group Co Ltd was down 1.6 percent and China
Union Holdings LTD slumped 5.2 percent.
Shares of nickel-related business, which had soared in the
past week, also fell back. Chengdu Huaze Cobalt & Nickel
Material Co. Ltd was down 9.2 percent and Jilin Ji
En Nickel Industry Co Ltd off 6.8 percent.
In Hong Kong, the benchmark was mainly lifted by social
networking and online gaming firm Tencent, which jumped 5.5
percent after reporting record net income - well above analyst
expectations - and the biggest profit growth in three years.
Tencent was the most actively traded stock in the morning,
with nearly HK$3 billion ($387 million) worth of shares changed
hands after the company conducted a five-for-one share split to
attract small investors.
The energy and telecommunication sectors were drags for
H-shares. Analysts said some rotational buying is going on after
shares in those two sectors climbed recently.
China Telecom Corp Ltd slid 4.2 percent, Sinopec
Corp lost 1.0 percent and PetroChina Co Ltd
was down 0.8 percent.
(Reporting by Grace Li; Editing by Richard Borsuk)