* HSI up 0.2 percent, H-shares index flat
* CSI300 slips 0.6 pct, Shanghai Comp down 0.4 pct
* Citic Pacific up 3.9 pct after tapping debt market
* AIA up 2.8 pct, Kweichow Moutai shares rebound
* Nomura sees shift from bonds to equities in 2013
By Vikram Subhedar
HONG KONG, Dec 11 Chinese shares eased from the
previous session's one-month high with weak mainland markets
paring Hong Kong's gains as investors stayed cautious ahead of
the U.S. Federal Reserve's last policy meeting in 2012.
The Hang Seng index ended Tuesday up 0.2 percent to
22,323.9, largely on the back of a 2.8 percent surge for shares
of insurer AIA. The China Enteprises index of
top locally listed mainland firms closed flat.
In China, the CSI300 of top Shanghai and Shenzhen
listings fell 0.6 percent to 2,258.5 while the Shanghai
Composite shed 0.4 percent to close at 2,074.7.
But light profit-taking followed Monday's rally in mainland
markets after data showed China's banks lent more slowly than
expected in November while the pace of total financing
"It was definitely a choppy session," said a Hong
Kong-based trader. "Regional investors were watching every tick
on the Shanghai Composite."
Traders and analysts said the that the focus now shifts to
the U.S. Fed, which begins a two-day meeting later on Tuesday.
The Fed is expected to announce it will buy $45 billion per
month of longer-dated Treasuries beginning in January to replace
the Operation Twist programme, which expires on Dec. 31.
Easing by major central banks globally to kickstart their
economies has sparked a rush of capital into Hong Kong,
prompting the territory's monetary authority to repeatedly
intervene in currency markets to defend the HK dollar's peg.
In the latest intervention, the Hong Kong Monetary authority
sold HK$6.2 billion ($800 million) in Hong Kong dollars as the
local currency hit the strong end of its trading range.
Analysts expect steadily improving global economic data to
keep supporting the flow of funds into Asia in 2013 as investors
boost positions in risky assets.
"Asian and Japan equities will be one of the recipients of
money flow out of Treasuries," said Michael Kurtz, chief Asia
equity strategist at Nomura.
"We are basically overweight all of north Asia at the
expense of Southeast Asia and India where we are predominately
underweight," said Kurtz.
AIA UNDERPINS HONG KONG
Shares of Citic Pacific rose 3.9 percent and were
the most actively traded stock on the Hang Seng after the
company, mired in financing issues related to its Australian
projects, tapped debt markets to raise up to $250 million.
Insurer AIA, the top performing Hang Seng component after
Citic, rose after the U.S. Treasury said it had launched the
sale of its remaining stake in American International Group
On the mainland, the beleaguered white liquor sector got a
lift after biggest producer Kweichow Moutai rebutted
reports it used additives in its products. Shares of the
company, which went untraded on Monday, were up 1.8 percent.
Real estate stocks were weaker in China as investors locked
in gains following the recent rally.
Poly Real Estate lost 2.1 percent while China
Vanke shed 1.1 percent.
Volumes remained relatively healthy in Shanghai, suggesting
retail investors, who were burned by nearly three years of weak
markets, were slowly getting back into stocks.