* HSI +0.3 pct, H-shares -0.1 pct, CSI300 -0.5 pct
* China nickel firms sink as nickel prices slide
* CNOOC rises for a second day after LNG deal with BP
(Updates to midday)
By Grace Li
HONG KONG, June 19 China shares extended losses
by midday on Thursday, as the lock-up of a sizeable amount of
capital for initial public offerings continued to weigh on the
Hong Kong shares rose slightly, buoyed by Wall Street's
optimism after the U.S. Federal Reserve gave a positive
assessment of the economy and committed to retaining
accommodative monetary policy.
By midday, the Hang Seng Index was up 0.3 percent at
23,250.56 points. The China Enterprises Index of the top
Chinese listings in Hong Kong held a soft tone, off 0.1 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings and the Shanghai Composite Index each
lost 0.5 percent and appeared on track for a third straight
daily loss. The Shanghai benchmark stood at 2,045.49 points.
In the mainland, the first four Chinese companies pushed
ahead with new listings after a four-month lull in IPOs,
starting to take subscriptions on Wednesday with the aim of
raising a combined 1.7 billion yuan ($273.80 million).
A fifth company - Ellington Electronics Technology - started
to take IPO subscriptions on Thursday.
"The companies are selling their new shares at relatively
low price-earnings ratios, so some investors are diverting money
from existing holdings for the IPOs. We see strong demand in
offline subscription," said Zhang Qi, a Shanghai-based analyst
with Haitong Securities.
But Zhang added he did not expect a deep correction in the
A-share market given the overall stable economy.
On Wednesday, Premier Li Keqiang said during his visit to
Britain that China's economy would not suffer a hard landing and
would continue to grow at a medium to high pace in the long term
without strong stimulus.
Chinese Nickel companies were among the hardest hit in the
morning, as prices for the base metal slid 2 percent with stocks
on the London Metal Exchange surging to a fresh high.
Jilin Ji En Nickel Industry dived 7.9 percent
and Chengdu Huaze Cobalt & Nickel Material 6.7
In Hong Kong, CNOOC gained 1.6 percent to its
highest since Jan. 2. The stock rose a more moderate 0.4 percent
on Wednesday after it announced a 20-year liquefied natural gas
(LNG) deal with BP.
Chinese developers listed in Hong Kong were the biggest
drags on the Hang Seng. China Overseas Land & Investment
and China Resources Land shed 1.7 and 3
($1 = 6.2090 Chinese yuan)
(Editing by Jacqueline Wong)