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China, HK stocks drop as HSBC and banks slide

 * Fundraising fears hit China bank shares
 * HSBC falls on worries about its Dubai World exposure
 (Updates to close)
 HONG KONG/SHANGHAI, Dec 9 (Reuters) - Shares in China and
Hong Kong fell on Wednesday on concerns over more share issues
and possible fundraising by banks, while sluggish overseas
markets also weighed on sentiment.
 The Shanghai Composite Index .SSEC ended down 1.73 percent
at 3,239.568 points, its lowest close in more than one week.
 The index has pulled back over the past two days after
rallying to the top of a range between 3,100 and 3,350 points
that has confined the index over the past month.
 Comments by authorities worried over the possibility of asset
price bubbles have also curbed market enthusiasm.
 Banks fell for a second day, with Industrial and Commercial
Bank of China (ICBC) 601398.SS sinking 1.51 percent to 5.22
yuan. In Hong Kong, ICBC 1398.HK fell 1.53 percent and smaller
rival China Construction Bank 0939.HK slid 1.87 percent.
 Industrial Bank 601166.SS, a mid-sized Chinese lender,
sagged 3.2 percent to 38.99 yuan after saying that its
shareholders had approved its plan for an 18 billion yuan rights
share issue. [ID:nTOE5B70AH]
 "The index was pressured by increasing share supplies while
possible fundraising in the bank sector left sentiment cautious
and unstable," said Chen Shaodan, senior analyst at Stockfly
Securities in Beijing.
 "Turnover is small, suggesting the market is weak, and the
index is expected to test its 30-day moving average now at 3,200
points in coming days," she added.
 Losing Shanghai A shares outnumbered gainers by 747 to 156,
while turnover dropped to a five-week low of 136 billion yuan
($19.92 billion) from Tuesday's 162 billion yuan.
 China Shipbuilding Industry 601989.SS said on Wednesday it
priced its A-share initial public offering at 7.38 yuan a share,
as expected at the top of an indicated range, raising 14.7
billion yuan. [ID:nSHA236671]
 Metal and coal shares were soft as the commodity markets were
sluggish, with Jiangxi Copper 600362.SS down 2.82 percent at
41.42 yuan while China Shenhua Energy 601088.SS lost 2.08
percent to 34.91 yuan.
 Jiangxi Copper 0358.HK fell 3.75 percent in Hong Kong.
 The auto sector was firmer on upbeat sales. FAW Car
000800.SZ rose 8.80 percent to 26.34 yuan while FAW Xiali
Automobile 000927.SZ jumped its 10 percent daily limit to 10.12
yuan. [ID:nSHA128037] [ID:nTOE5B803U]
 HONG KONG LACKS CATALYST
 The benchmark Hang Seng Index .HSI ended down 1.44 percent,
or 318.76 points, at 21,741.76, extending its losses for a fourth
straight day. Turnover was up at HK$74.5 billion ($9.6 billion)
from Tuesday's HK$68.5 billion.
 The China Enterprises Index .HSCE of top locally listed
mainland Chinese stocks was down 1.92 percent at 12,899.36.
 "There are a lack of catalysts at this point to drive the
market," said Belle Liang, research head at Core Pacific-
Yamichi. "Hong Kong is mainly driven by overseas stock market
performance, especially the drop in the U.S. overnight."
 After rising by as much as 4 percent to HK$3.59, debutant
Kaisa Group 1638.HK lost steam and ended down 0.29 percent
versus its IPO price of HK$3.45.
 Index heavyweight HSBC 0005.HK, the most actively traded
share, extended its fall on renewed worries over the lender's
exposure to troubled Dubai World, which asked creditors to delay
payment on its $26 billion of debt.
 HSBC was down 2.6 percent, its fourth day of decline.
 Standard Chartered Bank 2888.HK, which also has an exposure
in Dubai World, fell 4.16 percent. [ID:nGEE5B723X]
 Wing On Travel 1189.HK slumped 19.05 percent. The firm said
it planned to raise up to HK$549 million ($70.84 million) by
issuing up to 3.66 billion rights shares at HK$0.15 each, and
would issue HK$300 million in convertible bonds.
 Hong Kong Health Check and Laboratory 0397.HK rose for a
second day, gaining 14.06 percent. The stock surged 39.13 percent
on Tuesday, after it said it would set up a joint venture with a
state-owned enterprise in the mainland to engage in the solar
photovoltaic business in Haenan province.
 New Times Energy 0166.HK rose 6.06 percent. The firm said
it would buy a 90 percent stake in three gold mines with licences
in Qinglong Manchu Autonomous County, Hebei province.
  Guangzhou Investment 0123.HK advanced 1.95 percent. The
developer said it had secured a HK$3.2 billion syndicated loan
facility from a group of banks in Hong Kong.
 Contract cellphone maker Foxconn International 2038.HK fell
for a second day, shedding 3.22 percent, as investors continued
to pocket recent gains. Foxconn surged 16.9 percent on Monday
after Morgan Stanley raised its target price on the stock.
 Chinese developer R&F Properties 2777.HK fell 4.08 percent,
while the blue-chip property sub-index .HSNP was down 1.18
percent. The official Xinhua news agency reported that Beijing
will crack down on speculation in the property market.
[ID:nBJB003600]
 (Editing by Jacqueline Wong)





























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