* HSI -0.3 pct, H-shares -0.2 pct, CSI300 -0.3 pct
* Chinese dairy firms rise on report about more state
* Hong Kong property firms lead losses after Tuesday rally
(Updates to midday)
By Grace Li
HONG KONG, June 11 Hong Kong shares slipped on
Wednesday, with local property developers leading losses as
investors took profits after the index closed at its highest
since Jan. 2 in the previous session.
China shares also cooled after Tuesday's rally. One factor
weighing on them was the decision of equity index provider MSCI
not to add China's A-shares to its benchmark emerging markets
That news on Wednesday morning Asia time dented hopes of a
considerable capital inflow to mainland markets.
Chia Chin Ping, managing director at MSCI, in March had
estimated that inclusion of mainland listed A-shares in the
emerging markets index could move as much as $12 billion into
China's struggling stock markets as mutual funds and pension
funds reallocated their portfolios.
At midday, the Hang Seng Index was off 0.3 percent at
23,238.88 points. The China Enterprises Index of the top
Chinese listings in Hong Kong inched down 0.2 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings and the Shanghai Composite Index both
declined 0.3 percent. The Shanghai benchmark was at 2047.35
"The Hong Kong market is having some retracement," said
Linus Yip, strategist at First Shanghai Securities in Hong Kong.
"Overall, it's turning firmer and has the big chance to test
Property counters in Hong Kong were generally weaker. Sino
Land slumped 2.1 percent, Henderson Land Development
lost 1.5 percent, and Sun Hung Kai Properties
was off 0.9 percent.
Chinese dairy companies rose after the official Economy &
Nation Weekly reported late on Tuesday that the central
government had approved a restructuring plan for the industry.
In Shanghai, Bright Dairy & Food gained 1.4
percent and Inner Mongolia Yili Industrial Group
rose 0.3 percent.
China Huishan Dairy Holdings climbed 1.9 percent
ahead of full-year results later on Wednesday. Information from
Hong Kong Exchanges and Clearing Ltd. showed JP Morgan bought
more than 80 million of its shares last week.
French cosmetics and beauty products maker L'Occitane
International S.A. sank 3.3 percent after posting
weaker-than-expected results on Tuesday.
(Additional reporting by Chen Yixin in Shanghai; Editing by