* HSI +0.5 pct, H-shares +0.4 pct, CSI300 +0.1 pct
* ZTE at highest since April after raising H1 profit
* Zoomlion down to record low after profit warning
* Weichai Power at to 3-month high on positive profit alert
(Updates to midday)
By Grace Li
HONG KONG, July 15 China shares finished a
choppy Tuesday morning little changed, with investors taking
profits on recent outperformers, while Hong Kong markets rose
again, riding on continuing money inflows.
Chinese banks lent a much stronger-than-expected 1.08
trillion yuan ($173.9 billion) worth of new yuan loans in June
as Beijing steps up efforts to stimulate the world's
second-largest economy, data showed on Tuesday.
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings was 0.1 percent higher and the
Shanghai Composite Index was flat at 2,067.27 points,
hovering at a four-week high.
On Monday, both Chinese onshore indexes had their best day
since June 10.
The Hang Seng Index was up 0.5 percent at 23,462.24
points. The China Enterprises Index of the top Chinese
listings in Hong Kong added 0.4 percent and appeared on track
for a fourth straight daily gain.
"The U.S. market and the A-share market right now are good
support for Hong Kong. And internally, funds are still going
into Hong Kong," said Linus Yip, strategist at First Shanghai
Securities. "The Hang Seng Index is targeting towards the 24,000
On Monday, the city's central bank twice injected Hong Kong
dollars into the currency market as the local currency
repeatedly hit the strong end of its trading range.
"The momentum is still strong for China market because
turnover in the past two weeks is pretty good," Yip added,
saying that shares should rise if the second-quarter GDP growth
number, due on Wednesday, is good.
Chinese telecom equipment maker ZTE Corp
jumped 8.5 percent in Hong Kong, the biggest gain in a
year, after the company raised first half earnings guidance. Its
Shenzhen listing climbed 3.5 percent.
Hong Kong shares of Zoomlion Heavy Industry Science and
Technology, a leading Chinese construction equipment
maker, slumped 3 percent to a record low after it flagged a drop
of up to 70 percent in first-half net profit.
Weichai Power climbed 2.0 percent on a positive
profit alert, leading gains on the H-share index. Its Shenzhen
shares rose 1.6 percent to a three-month high.
The biggest index drag on the mainland was property
developer Gemdale Corp., which slid 4.5 percent.
Chinese airlines underperformed. Air China lost
0.8 percent after becoming the second Chinese airline in two
days to put out a profit warning. China Southern Airlines
, who flagged a profit decline due to exchange losses,
was off 0.4 percent. China Eastern Airlines shed 1.6
($1 = 6.2112 Chinese Yuan)
(Editing by Richard Borsuk)