* HSI -0.5 pct, H-shares -0.5 pct, CSI300 -0.7 pct
* Macau gaming sector down as mass table revenue growth
* China Unicom sinks ahead of H1 results
* HKEx rises to more than three-year high after earnings
(Updates to midday)
By Grace Li
HONG KONG, Aug 7 China shares slid on Thursday
as the country's large banks and oil firms extended a retreat
from recent highs, while a weaker Macau gambling sector hurt by
disappointing revenues weighed on Hong Kong markets.
By midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings fell 0.7 percent, while the Shanghai
Composite Index was off 0.6 percent at 2,204.33 points,
as both are headed for their third straight daily loss.
The Hang Seng Index and the China Enterprises Index
of the top Chinese listings in Hong Kong each slipped
0.5 percent. The benchmark index stood at 24,458.06 points.
"The Hong Kong market in the near term will still be under a
kind of mild consolidation, but the upside potential is still
strong because of the strong liquidity inflow," said Steven
Leung, sales director at brokerage UOB Kay Hian.
Casino stocks were the standout underperformers on Thursday,
with Sands China, Wynn Macau and Galaxy
Entertainment Group all down more than 5 percent.
Deutsche Bank in its latest report lowered third-quarter and
full-year revenue forecasts for the sector this year, citing
softer VIP volume and slower growth for mass table revenue in
Wells Fargo also said in a research note on Wednesday that
they "believe 2014 is likely to be choppy" for Macau, adding
that transit visa changes and China's anti-corruption campaign
could be factors in the weak results.
Also aggravating investors' concerns is a labour shortage
the operators are facing as they rush to build more casinos.
Labour strains look set to intensify with workers demanding
higher pay and threatening strikes.
In Shanghai, top index drags PetroChina dipped
0.6 percent and Industrial and Commercial Bank of China
fell 0.8 percent.
Inner Mongolia BaoTou Steel Union jumped the
maximum allowed 10 percent limit. Its shares have surged more
than 22 percent this week, after the company said it had won
central government approval to establish a rare earth group with
the aim of industry consolidation.
Aluminum Corp of China which also got such
approval, climbed another 1.7 percent after Wednesday's 10
Hong Kong Exchanges and Clearing (HKEx) spiked 2.4
percent to its highest since April 2011.
Daiwa Capital Markets raised the target price for HKEx to
HK$192.7 from HK$168.7, saying the company's interim results on
Wednesday showed "its operating costs are stabilising and should
bode well for its earnings outlook."
China Unicom shed another 3.2 percent after
Wednesday's drop of 5.3 percent, the biggest since May 2013.
Analysts said its first-half earnings later in the day could
(Editing by Jacqueline Wong)