* HSI -0.1 pct, H-shares +0.1 pct, CSI300 +0.2 pct
* China oil firms rise as crude moves toward 9-mth highs
* Chongqing Brewery hits 5-month high after div announcement
(Updates to midday)
By Grace Li
HONG KONG, June 16 China shares eked out slim
gains in a choppy morning session on Monday, lifted by strength
in energy firms after President Xi Jinping's call for a drastic
change in the sector as demand rises and supply is constrained.
Hong Kong shares remained tepid with investors awaiting
direction from a U.S. Federal Reserve meeting this week.
By midday, the Hang Seng Index inched down 0.1
percent to 23,304.60 points. The China Enterprises Index
of the top Chinese listings in Hong Kong was up 0.1 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings and the Shanghai Composite Index each
rose 0.2 percent. The Shanghai benchmark stood at 2,074.53
points, its highest level since late April.
"This week we are waiting for more news regarding the U.S.
economy, so the Federal Reserve meeting is going to show some
indication of whether the U.S. market can go up further," said
Steven Leung, sales director at brokerage UOB Kay Hian in Hong
"Also when the Hang Seng Index is above the 23,000 level,
investors are getting more cautious, seeing quite limited upside
unless we see more policies from China," Leung added.
The Federal Reserve will conclude a policy meeting on
Wednesday, with markets watching for any signals on when the
U.S. central bank might begin hiking interest rates.
China's two oil giants were the top index boosts, as crude
extended gains and tested nine-month highs on fears the
insurgency in Iraq could spread - disrupting oil exports.
PetroChina gained 1.0 percent in Hong
Kong and 0.4 percent in Shanghai. China Petroleum & Chemical
Corp added 1.0 percent in the onshore
market, while its Hong Kong listing rose 0.7 percent, with the
intraday level testing its highest since February 2008.
China's energy sector was also broadly pushed up by
President Xi's remarks that the country needs a revolution in
the way it produces and consumes energy, as demand continues to
rise and supply challenges mount, the official Xinhua news
agency said late on Friday.
Xi also called for the acceleration of China's nuclear
reactor programme on the eastern coast, bringing a rally in
related stocks. In Shenzhen, both Shenzhen Woer Heat-Shrinkable
Material and Jiangsu Shentong Valve
climbed more than 4 percent.
Chongqing Brewery surged 7.3 percent to a
5-month high after the company said it would pay a cash dividend
of 2 yuan per 10 shares to shareholders of record on June 19 for
Breweries were generally stronger on hopes the World Cup
will boost beer sales. Tsingtao Brewery gained 0.9
percent in Hong Kong.
Property giant China Vanke slid 2.6 percent, the
biggest index drag, ahead of China's house price figures for May
due on Wednesday.
(Editing by Jacqueline Wong)