* HSI +0.4 pct, H-shares +0.4 pct, CSI300 +0.4 pct
* PetroChina down again after state auditor's report
(Updates to midday)
By Grace Li
HONG KONG, June 24 Hong Kong shares early on
Tuesday clawed back some of the previous session's big losses,
while China's onshore markets also edged up in choppy morning
Gains in Hong Kong were capped largely by losses in Chinese
gas and oil firms, which were impacted by an anti-corruption
drive in the sector.
At midday, the Hang Seng Index and the China
Enterprises Index of the top Chinese listings in Hong
Kong both were up 0.4 percent. The Hang Seng, which tumbled 1.7
percent on Monday to its lowest close since May 21, finished the
session at 22,884.80 points.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings rose 0.4 percent, as did the Shanghai Composite
Index, which was at 2,032.38 points.
On Monday, the Hang Seng was up at midday, thanks to a good
China factory survey, but then it plunged in the afternoon -
mystifying many analysts - and ended the day down nearly 400
"The drop was totally unexpected, with a volatility that
hasn't been seen for a long time," said Larry Jiang, chief
strategist at Guotai Junan International.
He add that index futures-related trading and profit-taking
by some institutional investors could have been contributing
"But it's not likely the same thing would happen again in
the near term, with the U.S markets closing at record highs
recently and the Chinese economy stabilising," Jiang said.
Some other analysts also said the concerns over political
stability in the former British colony could have played a role
An unofficial referendum on democratic reforms in the city,
part of a civil campaign branded illegal by the former local
government and by Communist Party authorities in Beijing,
started on Friday and has drawn hundreds of thousands of votes.
On Tuesday, Chinese state energy firms listed in Hong Kong
were broadly weaker, amid an anti-graft campaign targetting the
sector. Late on Monday, China formally charged a former head of
the country's energy regulator with corruption.
CNOOC shed 1 percent, the biggest index drag, and
China Petroleum & Chemical Corp was off 0.6 percent.
PetroChina lost another 0.5 percent after Monday's
similar drop, hurt by a report last week by the state auditor on
irregularity found at its parent company China National
(Editing by Richard Borsuk)