* HSI -0.3 pct, H-shares -0.2 pct, CSI300 -0.3 pct
* Chinese dairy firms rise on report about more state support
* Hong Kong property firms lead losses after Tuesday rally (Updates to midday)
By Grace Li
HONG KONG, June 11 (Reuters) - Hong Kong shares slipped on Wednesday, with local property developers leading losses as investors took profits after the index closed at its highest since Jan. 2 in the previous session.
China shares also cooled after Tuesday’s rally. One factor weighing on them was the decision of equity index provider MSCI not to add China’s A-shares to its benchmark emerging markets index.
That news on Wednesday morning Asia time dented hopes of a considerable capital inflow to mainland markets.
Chia Chin Ping, managing director at MSCI, in March had estimated that inclusion of mainland listed A-shares in the emerging markets index could move as much as $12 billion into China’s struggling stock markets as mutual funds and pension funds reallocated their portfolios.
At midday, the Hang Seng Index was off 0.3 percent at 23,238.88 points. The China Enterprises Index of the top Chinese listings in Hong Kong inched down 0.2 percent.
The CSI300 of the leading Shanghai and Shenzhen A-share listings and the Shanghai Composite Index both declined 0.3 percent. The Shanghai benchmark was at 2047.35 points.
“The Hong Kong market is having some retracement,” said Linus Yip, strategist at First Shanghai Securities in Hong Kong. “Overall, it’s turning firmer and has the big chance to test higher.”
Property counters in Hong Kong were generally weaker. Sino Land slumped 2.1 percent, Henderson Land Development lost 1.5 percent, and Sun Hung Kai Properties was off 0.9 percent.
Chinese dairy companies rose after the official Economy & Nation Weekly reported late on Tuesday that the central government had approved a restructuring plan for the industry.
In Shanghai, Bright Dairy & Food gained 1.4 percent and Inner Mongolia Yili Industrial Group rose 0.3 percent.
China Huishan Dairy Holdings climbed 1.9 percent ahead of full-year results later on Wednesday. Information from Hong Kong Exchanges and Clearing Ltd. showed JP Morgan bought more than 80 million of its shares last week.
French cosmetics and beauty products maker L‘Occitane International S.A. sank 3.3 percent after posting weaker-than-expected results on Tuesday. (Additional reporting by Chen Yixin in Shanghai; Editing by Richard Borsuk)