June 6, 2014 / 4:51 AM / 4 years ago

China shares set to snap 3 weeks of gains, Hong Kong weaker too

* HSI -0.3 pct, H-shares -0.2 pct, CSI300 -1.0 pct

* Macau casino sector down after gaming revenue disappoints

* Prada tumbles to lowest since August 2012 as Q1 sales fall

* Qingdao Port dips below offering price in HK debut (Updates to midday)

By Grace Li

HONG KONG, June 6 (Reuters) - China shares fell and could post their first weekly loss in four, as investors pull money out of the market while awaiting direction from major economic data in the coming week.

Hong Kong’s benchmark index was up half a percent when it opened, lifted by the European Central Bank’s latest stimulus package, but gains were reversed in late trade as losses accelerated in markets on the China mainland.

The ECB boosted Europe and U.S. markets on Thursday by cutting interest rates to record lows and launching a series of measures to pump money into the sluggish euro zone economy.

By midday, the Hang Seng Index was down 0.3 percent at 23,051.07 points, while the China Enterprises Index of the top Chinese listings in Hong Kong slipped 0.2 percent.

The CSI300 of the leading Shanghai and Shenzhen A-share listings fell 1.0 percent, while the Shanghai Composite Index was off 0.6 percent at 2,028.02 points.

On the week, the Hang Seng Index is now down 0.1 percent. The H-share index fared better, now up 0.9 percent and was headed for its fourth straight weekly gain. The CSI300 and Shanghai Composite are down 1.3 and 0.5 percent, respectively.

“The concerns about a slowing Chinese economy and the possibility of a hard landing in some parts of China still weigh on the markets,” said Larry Jiang, chief strategist at Guotai Junan International Securities in Hong Kong.

“That’s why those large-cap stocks like Chinese bank shares failed to outperform with so much good news around,” Jiang added.

In Shanghai, Industrial and Commercial Bank of China slid 0.6 percent, the biggest index drag, while Bank of China lost 0.7 percent.

The Macau gaming sector was broadly lower in the morning session, with Wynn Macau, MGM China Holdings and Galaxy Entertainment Group all down more than 2 percent. Losses have been seen since revenue data from earlier this week came in weaker than expected.

Qingdao Port International was down 2.4 percent from its HK$3.76 per share IPO price on its trading debut in Hong Kong, amid concern that the company could be hurt by a probe into metal financing at the world’s seventh-busiest port.

Prada sank 5.9 percent to its lowest since August 2012 after the Italian luxury group signaled a possible cut in its full-year guidance as first-quarter sales dropped in its main European and Asian markets.

Markets are bracing for the U.S. payrolls report due later Friday and a slew of China economic data for May. Trade is due on Sunday, inflation on Tuesday, and urban investment, industrial output and retail sales next Friday. Monthly money supply and loan growth data is expected between June 10 and 15. (Editing by Jacqueline Wong)

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