* HSI -0.6 pct, H-shares -0.8 pct, CSI300 -0.6 pct
* Chinese solar companies strong on report of policy support
* HKEx drops ahead of H1 results
(Updates to midday)
By Grace Li
HONG KONG, Aug 6 Hong Kong and China shares
dropped on Wednesday with investors taking profits on
recently-strong Chinese blue-chip stocks and keeping an eye on
declines in U.S. markets.
The Hang Seng Index, which has risen 10 out of 11
previous sessions, was down 0.6 percent to 24,497.88 points at
midday. The China Enterprises Index of the top Chinese
listings in Hong Kong fell 0.8 percent to a two-week low.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings was off 0.6 percent, while the Shanghai
Composite Index edged down 0.5 percent to 2,209.79
On mainland markets, the second day of decline is "a normal
market correction after recent heavy gains, while there is no
major negative news on the horizon," said Zheng Weigang, a
senior trader at Shanghai Securities.
"The correction is not likely to divert the recent uptrend
of the mainland's stock markets," he said. "Investors will
continue to buy A-shares in large caps, whose prices lag their
Hong Kong counterparts. The Shanghai market's rally should last
at least until late September because of the Shanghai-Hong Kong
In Shanghai, top index drags PetroChina slipped
0.8 percent and Industrial and Commercial Bank of China
One factor weighing down the Hong Kong benchmark was several
down sessions for stocks in New York, said Castor Pang, head of
research at Core Pacific-Yamaichi.
But he said the Hang Seng should have strong support around
the 23,800-point level.
On Wednesday, Hong Kong-listed Chinese solar companies were
key outperformers, tracking gains in their U.S.-listed peers
after a Bloomberg report said China may announce policies to
encourage residential solar-power installations as soon as this
China Singyes Solar Technologies Holdings jumped
6.1 percent and GCL-Poly Energy Holdings climbed 1.9
Hong Kong Exchanges and Clearing eased 0.3 percent
ahead of interim earnings during lunch break which showed a
modest rise in net profit. Its shares reached a more than
three-year high last week due to progress on creating the
"connector", a cross-border trading link with mainland markets.
Guotai Junan International spiked 4.1 percent to
near its all-time high. The brokerage reported half-year net
profit that was nearly triple the level one year earlier.
Leading losses on the Hang Seng was China Unicom,
which sank 4.8 percent after closing on Tuesday at its highest
since October 2012.
Interim corporate results will dominate the China and Hong
Kong markets over the next few weeks, with a slew of China July
economic data also in focus, starting with trade on Friday and
inflation on Saturday.
(Additional reporting by Lu Jianxin in SHANGHAI; Editing by