* HSI -0.2 pct, H-shares -0.3 pct, CSI300 -0.7 pct
* China banks down after new loan numbers well below
* Gas distributors fall on price hike
* Liquor makers rise as peak season draws near
(Updates to midday)
By Grace Li
HONG KONG, Aug 13 China and Hong Kong shares
reversed gains and slipped into the red on Wednesday, after
central bank data showed Chinese banks lent far less money than
expected in July while money supply growth eased.
Banks in China made 385.2 billion yuan ($62.54 billion) of
new yuan loans in July, slowing sharply from 1.08 trillion yuan
in June and well below market forecasts of 727.5 billion yuan.
China's total social financing aggregate, a broad measure of
liquidity in the economy, was 273.1 billion yuan in July, about
one seventh of the 1.97 trillion yuan the month before.
China's main stock index, the Shanghai Composite Index
, surrendered a gain of 0.4 percent to end the morning
session down 0.6 percent at 2,207.59 points. The CSI300
of the leading Shanghai and Shenzhen A-share listings
fell 0.7 percent.
The Hang Seng Index was off 0.2 percent at 24,630.93
points by midday, while the China Enterprises Index of
the top Chinese listings in Hong Kong slipped 0.3 percent.
"Many investors have been waiting for July's economic data
to decide their investment strategy after the market's recent
gains," said Xiao Shijun, analyst at Guodu Securities in
"Now that the credit data lagged far behind expectations,
that is really a hit at market sentiment," he said.
Chinese banks suffered losses following the data release.
Agricultural Bank of China edged down 0.4 percent
and Industrial and Commercial Bank of China 0.3
Smaller lenders Bank of Communications and China
Citic Bank both slid 1.4 percent.
The makers of China's fiery liquor baijiu bucked the trend
and posted solid gains on Wednesday, on hopes that sales would
jump with the Mid-Autumn Festival nearing.
Jiugui Liquor soared the maximum allowed 10
percent. Sector leader Kweichow Moutai added a
modest 0.2 percent after an Information Times report on
Wednesday said some shops in Guangzhou have raised prices for
Shares of mainland gas distributors ENN Energy Holdings
and China Resources Gas Group sank 3.8 and
1.7 percent, respectively.
China announced on Tuesday it would raise natural gas prices
for bulk buyers and non-residential use from Sept. 1 by 0.4 yuan
per cubic metre.
Barclays, in a note on Wednesday, said higher prices may
weigh on China's city gas distributors as margins soften and
volume growth ebbs.
(1 US dollar = 6.1597 Chinese yuan)
(Additional reporting by Lu Jianxin in SHANGHAI; Editing by