* HSI +0.1 pct, CSI300 -0.4 pct, Shanghai -0.3 pct
* ZTE, Angang Steel hit by profit warnings
* China data mixed, Q3 GDP on Thursday eyed
* Belle at 5-week low after disappointing sales
(updates to close)
By Clement Tan
HONG KONG, Oct 15 China shares slipped to a
one-week low as profit-warnings stalled a rally driven by
market-boosting steps from Beijing, despite inflation data
released on Monday that showed the Chinese central bank has
scope to ease monetary policy further.
Hong Kong shares barely held onto gains with the Hang Seng
closing up 0.1 percent as weakness in Chinese retailers
was offset by strength in local blue-chip property developers
such as Henderson Land.
But profit warnings at the outset of the earnings season
shoved onshore markets into negative territory, with the CSI300
Index of the top Shanghai and Shenzhen listings losing
0.4 percent, and the Shanghai Composite Index down 0.3
China's second-largest telecom equipment maker ZTE Corp
and Angang Steel both
warned on earnings.
Macro-economic data released in recent days painted a mixed
picture with bank lending in September coming in weaker than
expected, but export growth beat forecasts and inflation was
benign in September.
"The profit warnings are a sign that China still needs to do
more to support growth, but I think most people are expecting
more fiscal than monetary measures," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
Recent moves by Beijing have included the acceleration of
infrastructure spending and the deployment of government funds
to lift stakes in major Chinese banks.
"The main focus this week is China's Q3 GDP figure on
Thursday. I don't think sentiment will change too much as long
as it's in line with expectations," Wong said
Beijing will announce the official third-quarter growth
figure later this week, expected at 7.4 percent -- which would
mark a seventh straight quarter of slowing growth.
ZTE slumped 15.8 percent in Hong Kong and the maximum 10
percent in Shenzhen, both in heavy volume, after flagging a loss
of as much as $279.2 million for the first nine months of the
Analysts at CICC downgraded ZTE shares to "hold" after the
company, during a conference call with analysts on Sunday, cited
delayed revenue from domestic and international markets as
reasons for the loss.
Angang Steel lost 2.3 percent in Hong Kong and 1.1 percent
in Shenzhen after the company warned late on Friday that it
could make a loss of $505 million for the first nine months this
Belle International, China's leading foot- and
sportswear retailer, slid 4.3 percent after announcing
underwhelming same store sales growth in the third quarter.
The slump in Belle shares put them in negative territory for
the year, down 0.2 percent in 2012 so far, compared to the 14.5
percent gain for the Hang Seng.
Analysts at UBS analysts maintained their "sell" rating on
Belle's stock, saying same store sales could turn negative in
the coming quarters.
(Additional reporting by Vikram Subhedar; Editing by Simon