* HSI +0.4 pct, H-shares +0.8 pct, CSI300 +0.6 pct
* H-shares hit two-month high
* ICBC A-share at highest since Dec, due to eased monetary
(Updates to midday)
By Grace Li and Lu Jianxin
HONG KONG/Shanghai, June 10 China shares ended a
choppy morning trade up on Tuesday, led by strong gains in
financial counters after China detailed which banks would
benefit from a recent cut of required reserves ratios.
The move to boost liquidity helped offset a negative impact
from the resumption of initial public offerings (IPOs) in the
mainland after a four-month hiatus. IPOs typically divert funds
from existing shares.
Hong Kong shares opened up following another record-high on
Wall Street, but then moved into negative territory before later
tracking gains in the mainland.
At midday, the Hang Seng Index was up 0.4 percent at
23,208.53 points. The China Enterprises Index of the top
Chinese listings in Hong Kong was up 0.8 percent, reaching its
highest level since April 10.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings gained 0.6 percent, while the Shanghai
Composite Index was up 0.4 percent at 2,039.03 points.
Both remain in the narrow range they have traded in for nearly
Tuesday's gains came in weak turnover. Shanghai midday
volume was below its 20-day moving average for a 12th
consecutive session, and Hong Kong was lower for an eighth
China has cut the level of required serves banks for banks
that have sizable loans to the farming sector and small- and
medium-sized firms, the People's Bank of China said late on
Monday. [ID: nL4N0OQ2SZ]
"People believe that financial firms such as banks will
benefit from an increasingly easing liquidity stance from the
government," said Zhang Gang, senior analyst at Central
Securities in Shanghai.
But he said the impact of Monday's announcement would be
limited as the easing move did not exceed expectations.
"Both the main stock index and financial stocks are likely
to stage moderate movements in the near term as investors await
fresh signs on how China's economy is performing and future
policy moves," Zhang said.
Industrial and Commercial Bank of China, the top
index mover in Shanghai, rose 0.8 percent to its highest since
Brokerage firms were generally stronger, thanks to the IPO
resumption. CITIC Securities was up 1.2
percent in Shanghai and 2.6 percent in Hong Kong. Haitong
Securities gained 1.0 and 1.7 percent in
the markets respectively.
Macau casinos extended losses, with MGM China Holdings
and SJM Holdings each down 5.2 percent.
"The downtrend could continue because the World Cup most
likely would draw away lots of attention," said Ben Kwong,
director at KGI Asia.
CITIC Resources Holdings Ltd shares tumbled 6.8
percent after the company said metal it stores at Qingdao port
may be affected by a probe into suspected fraud.
(Editing by Richard Borsuk)