* HSI flat, H-shares +0.4 pct, CSI300 -0.2 pct
* China property sector rises again on loosening policy in
* Hong Kong retailers suffer after data disappoints
(Updates to midday)
By Grace Li
HONG KONG, July 4 China shares slipped from
two-week highs early Friday as investors took profit on recent
outperformers, though a stronger property sector helped limited
Hong Kong's benchmark index ended the morning session barely
changed from its highest close since December. It pared early
gains rooted in U.S. jobs data that showed the lowest
unemployment rate in six years.
At midday, the Hang Seng Index was flat at 23,535.84
points. The China Enterprises Index of the top Chinese
listings in Hong Kong rose 0.4 percent and might have its fourth
straight daily gain.
The indexes were up 1.4 and 1.8 percent this week,
The CSI300 of the leading Shanghai and Shenzhen
A-share listings edged down 0.2 percent. The Shanghai Composite
Index was off 0.3 percent at 2,056.45 points.
On the week, the mainland indexes were up 1.2 and 1.0
Gains in the previous four sessions helped the Shanghai
index rebound from its 50-day moving average in improved volume,
a positive technical sign that suggests further gains could be
Friday's slip is "just a consolidation in the A-share
market," said Ben Kwong, director at KGI Asia in Hong Kong.
He said that after chasing some hot stocks earlier this
week, investors may "sit for a while to see whether the
liquidity is still there" and buy laggards.
Shipping and port stocks, standout outperformers earlier
this week, were badly hit on Friday. Dalian Port PDA
and Rizhao Port both plunged 9.4 percent, while
China Shipping Container Lines shed 3.4 percent.
On Thursday, the three firms surged by or close to the 10
percent limit on hopes of benefits if a free trade deal between
China and South Korea comes out of President Xi Jinping's visit
The two countries said that they are aiming to conclude
talks on such an agreement by the end of the year.
Hong Kong retailers suffered losses, after data late on
Thursday showed retail sales in May fell a fourth consecutive
monthly, with sales of jewellery, watches and luxury gifts down
24.5 percent from a year earlier.
Luk Fook Holdings International slid 2.3 percent,
while Wharf Holdings, a developer and owner of
shopping malls, lost 1.0 percent.
Leading gains on the Hang Seng was China Resources Land
, which climbed 3.1 percent and was up 8.9 percent for
Its mainland-listed peers were among top index boosts. Poly
Real Estate Group rose 1.8 percent in Shanghai.
China Vanke climbed 2.8 percent in
Shenzhen and 2.9 percent in Hong Kong.
In a note dated on Thursday, Barclays attributed the
sector's recent strong performance to an easier policy
environment across most cities and better sales in June.
(Editing by Richard Borsuk)