* HSI -0.6 pct, H-shares -0.6 pct, CSI300 -0.8 pct
* Chinese banks pull back after a rally on Monday
* Vanke slumped to 3-week low ahead of May housing data
* Macau casinos weaker, hit by shorter permitted stay for
(Updates to midday)
By Grace Li
HONG KONG, June 17 Shares in Hong Kong and China
fell on Tuesday as investors took profits in banking sectors
following a strong rally in the previous two sessions.
Sentiment was also dampened by weak data from China.
The amount of new foreign investment China attracted in May
shrank by the most in 16 months, hurt partly by its cooling
economy, though the trade ministry said the outlook may be
brightening for exporters.
By midday, the Hang Seng Index and the China
Enterprises Index of the top Chinese listings in Hong
Kong were each off 0.6 percent. The HSI finished the morning
session at 23,170.29 points.
On the mainland, the CSI300 of the leading
Shanghai and Shenzhen A-share listings fell 0.8 percent. The
Shanghai Composite Index also slipped 0.8 percent to
2,068.70 points, after posting a nearly two-month closing high
"The indexes were mainly dragged down by some heavyweight
stocks like the banks, which posted strong gains yesterday,"
said Cao Xuefeng, head of research at Huaxi Securities in
"There's not enough funds to flow into these counters to
support the uptrend. Also, sentiment might be hurt as the
central bank said it didn't expand the scope of targeted
loosening," Cao added.
Chinese banks outperformed on Monday afternoon after four
listed banks confirmed they were qualified for a reduction in
reserve requirements announced by the central bank last week.
That had sparked speculation that the loosening measures
would be extended to more banks, which the People's Bank of
China denied on its official Weibo site later on Monday,
reiterating that the cut only applies to banks which lend
substantially to small firms and the farm sector.
China Merchants Bank and China Minsheng Banking
Corp slipped 0.9 and 0.5 percent, respectively.
Property giant China Vanke slid 1.8 percent to a
three-week low after a drop of 2 percent in the previous day,
while Poly Real Estate Group shed 1.6 percent.
Markets are bracing for China's May house price figures on
Wednesday. A sharp deterioration in the already-cooling property
sector would increase the risks to the banking system and the
Macau casino shares extended a decline which began in
mid-March on fears of weaker growth prospects.
The world's gambling capital said late on Monday it would
shorten the permitted transit time stay for Chinese tourists to
five days from the current seven days from July 1.
New World China Land dived more than 15 percent to
its lowest in more than three months, after the company said its
shareholders have rejected its controlling shareholder New World
Development's (NWD) HK$18.6 billion ($2.40
billion)offer to take the company private. NWD lost 1 percent.
($1 = 7.7515 Hong Kong Dollars)
(Editing by Kim Coghill)