(Corrects second-to-last paragraph to say that Sunac China is
not a shareholder in Greentown China)
* HSI -0.1 pct, H-shares +0.2 pct, CSI300 -0.4 pct
* Greentown, Sunac rise after earnings reports
* Chinese power sector strong on hopes for reform benefits
By Grace Li
HONG KONG, Aug 26 China shares fell again on
Tuesday as investors sold recent outperformers ahead of a deluge
of initial public offerings (IPOs), while the Hong Kong market
was tepid with its benchmark index hovering around a more than
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings and the Shanghai Composite Index
each were down 0.4 percent. The Shanghai benchmark stood
at 2,219.52 points. Both swung between negative and positive
territory in morning trade.
The Hang Seng Index, which closed on Monday at its
highest since May 2008, was 0.1 percent lower at 25,134.96
points. The China Enterprises Index of the top Chinese
listings in Hong Kong was the only major index with gains at
midday, edged up 0.2 percent.
For now, Hong Kong "is locked in a narrow range," said Linus
Yip, strategist at First Shanghai Securities. "It has a good
chance to go higher after the consolidation."
"The market overall still has the expectation that there
will be more easing policies coming up in mainland China. And
the European Central Bank, after a meeting, also said that maybe
they would take more steps to give the market more stimulus,"
Chinese airlines, which surged on Monday afternoon,
retreated on Tuesday. China Eastern Airlines and
China Southern Airlines both shed more than 3
percent. Air China, whose interim results are due
later in the day, was down 3 percent.
Recent outperforming media companies suffered losses.
People.cn sank 3.5 percent, as did JiShi Media
Chinese power producers were broadly stronger after a report
in the 21st Century Business Herald said a main part of the
energy sector's next five-year plan is reform letting the market
China Yangtze Power, top index boost, jumped 5.4
percent to a one-year high, also helped by its announcement late
on Monday that controlling shareholder China Three Gorges Corp
signed an agreement with China National Nuclear Corp on nuclear
Some Chinese property developers posted gains bolstered by
earnings. Poly Real Estate Group rose 0.7 percent.
Greentown China Holdings soared 7.3 percent,
despite reporting on Monday a 67 percent drop in first half net
profit, which it had flagged. Sunac China Holdings,
which proposed to buy a stake in Greentown in May, jumped 5.5
In a research note after the results came out, Barclays said
Greentown's earnings miss had already been priced in and its
analysts "appreciate management's de-stocking strategy".
(Editing by Richard Borsuk)