* HSI flat, H-shares -0.5, CSI300 -0.3 pct
* 11 Chinese firms to launch IPOs, could dilute valuations
* Earnings performance, strong global market boost HK
* New stock account openings at 4-mth high
By Chen Yixin and Pete Sweeney
SHANGHAI, Aug 20 China's stock indexes fell
slightly by midday on Wednesday, on worries that upcoming
initial public offerings (IPOs) will tax market liquidity even
as investors look to take profits from a rise in large-cap
Hong Kong stocks, however, found some support on positive
earnings results from index majors and strong performance in
offshore equity markets.
By midday, the CSI300 index of leading Shanghai
and Shenzhen A-share listings was down 0.3 percent. The Shanghai
Composite fell 0.1 percent to 2,242.96 points.
In Hong Kong, the HSI index edged up 0.01 percent to
25,124.73 points, with the China share sub-component
0.5 percent lower at 11,040.16 points.
Late on Tuesday, the Chinese Securities Regulatory
Commission (CSRC) announced that 11 Chinese companies would
launch IPOs, with subscriptions starting at the end of August.
"This information has some impact on liquidity in today's
market, as investors are expected to set aside money to purchase
new shares," said Du Changchun, an analyst from Northeast
Securities in Shanghai.
He said that profit-taking seen in some index heavyweight
shares, as well as a sell-off in media shares from the ChiNext
board after a three-day rally, also dragged on the market.
Most analysts hold positive views on the domestic market.
Some said that despite momentum weakening in recent days, the
market was still on an upward trend. One analyst noted the
market had been in bullish mode since the end of July.
The number of stock accounts opened at mainland brokerages
last week broke 150,000, the highest level in four months, the
official Shanghai Securities News reported on Wednesday citing a
The paper also reported that the head of the debt financing
department at Haitong Securities Co Ltd was involved
in a bond market anti-corruption probe, but the market appeared
to shrug off the news, with shares of the securities firm easing
only 0.5 percent in line with the broader market.
Several major-listed companies and banks in Hong Kong posted
stronger than expected first-half earnings late on Tuesday. They
included Brilliance China Auto, up 5.1 percent, which
lent support to the Hong Kong market hovering around six-year
highs, analysts said.
"Companies announcing strong results -- such as Brilliance
China -- have raised interest in related stocks such as
Dongfeng," said Ben Kwong, head of research and director of KGI
Dongfeng Motor Group was up more than 2 percent.
(Additional reporting Shanghai Newsroom; Editing by Jacqueline