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China shares slip ahead of more July economic data, Hong Kong sags too
August 12, 2014 / 4:55 AM / 3 years ago

China shares slip ahead of more July economic data, Hong Kong sags too

* HSI -0.1 pct, H-shares -0.1 pct, CSI300 -0.4 pct

* Tencent, Sinopec up after executives meet

* Gujing Distillery rises after interim results beat peers’

* Yonghui Superstores soars on Dairy Farm unit’s share-buying plan (Updates to midday)

By Grace Li

HONG KONG, Aug 12 (Reuters) - China shares weakened on Tuesday after the previous day’s strong gains, as cautious investors awaited more July data for fresh clues on how well the world’s second largest ecoomy is recovering.

Hong Kong shares also underperformed regional markets with some profit-taking on Chinese financials following Monday’s rebound.

At midday, the Hang Seng Index had inched 0.1 percent lower to 24,615.06 points. The China Enterprises Index of the top Chinese listings in Hong Kong also slipped 0.1 percent.

The CSI300 of the leading Shanghai and Shenzhen A-share listings fell 0.4 percent. The Shanghai Composite Index was off 0.2 percent at 2,219.99 points after Monday’s highest close in eight months.

China’s fiscal expenditure grew 9.6 percent in July from a year earlier, compared with a rise of 26.1 percent in June, the finance ministry said on Monday, indicating the government is slowing budget spending as the economy shows signs of stabilising.

For July, China has announced inflation and trade data, which give a mixed picture of how the economy is faring.

Beijing is due to release urban investment, industrial output and retail sales figures on Wednesday, while data on monthly money supply and loan growth will also come out this week.

“Investors are waiting to see to what degree the economy has stabilised, as well as the follow-up macro policies,” said Xiao Shijun, an analyst at Guodu Securities in Beijing.

Tencent Holdings gained 1 percent and China Petroleum & Chemical Corp (Sinopec) rose 0.4 percent after Sinopec said its chairman Fu Chengyu talked with Tencent president Lau Chi Ping on potential cooperation.

Tencent is expected to report first-half earnings on Wednesday. Its shares are now up 35 percent on the year to date, outshining a 5.6 percent jump for the Hang Seng index.

Anhui Gujing Distillery climbed 3.8 percent after posting January-June net profit that was 4.8 percent below a year earlier but topped results of peers in the Chinese liquor sector.

Yonghui Superstores surged the maximum allowed 10 percent, lifted by a share purchase plan by The Dairy Farm Co Ltd.

The company said late on Monday it plans to raise up to 5.69 billion yuan ($924.30 million) via private placement of shares, and that the unit of Dairy Farm International Holdings Ltd plans to subscribe to all of them. (Editing by Richard Borsuk)

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