* HSI +0.1 pct, H-shares -0.4 pct, CSI300 -0.6 pct
* China financials down as PBOC says to strengthen
* China Vanke H-shares dip below opening price in HK debut
(Updates to midday)
By Grace Li
HONG KONG, June 25 China shares fell in early
trade on Wednesday, weighed down by underperforming financial
institutions, while the benchmark index in Hong Kong eked out
By midday, the Hang Seng Index inched 0.1 percent
higher to 22,905.11 points. The China Enterprises Index
of the top Chinese listings in Hong Kong fell 0.4 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings slipped 0.6 percent. The Shanghai Composite
Index was down 0.5 percent at 2,023.65 points, its
lowest since May 22.
"The resumption of initial public offerings (IPOs) is still
an important factor in diverting funds from the market,
especially at the quarter-end when liquidity is not very
sufficient," said Zhang Yanbin, analyst at Zheshang Securities
"But the correction on the SSEC is going to be very limited.
There should be a strong support at the 2,000-point level,"
The new listings in the mainland have attracted huge demand
after a four-month hiatus on offerings. The first six companies
which have finished subscriptions locked up a combined 563.9
billion yuan ($90.82 billion), the China Securities Regulatory
Commission said on its official microblog late on Tuesday.
Three will have their trading debut in Shenzhen on Thursday.
Chinese financials were among the biggest index drags during
the session. Ping An Insurance Group Co of China
shed 0.7 percent, as did Industrial Bank.
The country's biggest lender Industrial and Commercial Bank
of China lost 1.5 percent to a three-month low,
while the largest listed brokerage CITIC Securities
was off 1 percent.
A deputy governor of the People's Bank of China (PBOC) said
on Tuesday the central bank is working on rules regarding
bankruptcy of financial institutions to strengthen regulation in
the sector, mainland media reported.
News reports quoting a central bank official saying the cut
in banks' reserve requirement ratios is expected to be assessed
once a year, dashed some smaller banks' hopes of benefitting
from a loosening in the near term.
China Vanke was down 3 percent from
its HK$13.66 per share opening price on its trading debut in
Hong Kong. The largest residential property developer in China
converted its B-shares in Shenzhen into H-shares, listing in the
offshore market by way of introduction without raising any new
The company also said on Wednesday it was in talks with
global investors, including funds and real estate peers, to sell
a strategic stake as the company seeks to expand overseas and
tap offshore capital markets.
Its Shenzhen A-share listing gained 0.3 percent at 8.11
The Hang Seng was mainly lifted by a few heavyweight stocks.
Tencent Holdings and China Mobile each added
($1 = 6.2090 Chinese yuan)
(Reporting by Grace Li; Editing by Jacqueline Wong)