* HSI +1 pct, H-shares +0.9 pct, CSI300 -0.8 pct
* China property sector strong, finmin comments buoy reform
* Wuliangye posts 6th daily loss, contamination fears
* Tingyi, China Resources Enterprises slide on earnings
By Clement Tan
HONG KONG, Nov 22 (Reuters) - Hong Kong shares climbed to
their highest in two weeks on Thursday, helped by strength in
Chinese property-related counters as investors cheered official
comments committing to a gradual implementation of property
Mainland Chinese markets fell as liquor makers tumbled
further after government tests substantiated local press reports
about toxic substances in products of one of the firms, Jiugui
Both on- and off-shore Chinese markets, however, barely
reacted to a preliminary survey of November manufacturing
activity in China, which showed expansion accelerate in November
for the first time in 13 months.
The Hang Seng Index rose 1 percent to close at its
highest since Nov. 7, while the China Enterprises Index
of the top Chinese listings in Hong Kong firmed 0.9 percent.
Bourse turnover declined 6 percent from Wednesday and was below
its 30-day moving average for a ninth-straight session.
The CSI300 Index of the top Shanghai and Shenzhen
fell 0.8 percent off a one-week high set on Wednesday. The
Shanghai Composite Index shed 0.7 percent as bourse
volume dropped some 13 percent from Wednesday.
"The Chinese property sector offers some kind of earnings
guarantee now at a time where earnings for other late cyclical
sectors such as the consumer sector still seem weak," Alan Lam,
Julius Baer's Greater China equity analyst, told Reuters.
He added that investors will be watching China's annual
central economic work conference meeting, typically held in
December, for more concrete clues on the new leadership team's
On Thursday, China Overseas Land & Investment
jumped 2.1 percent, creeping back towards an all-time high set
on Nov. 5. China Resources Land soared 3.5 percent to
its highest in almost three years.
They are each set for their first annual gain in three
years, now up 67 and 57 percent on the year. This compares to
the 18 percent gain on the Hang Seng Index and 6 percent gain on
the China Enterprises Index.
Official media on Thursday quoted Finance Minister Xie Xuren
as saying that the implementation of property taxes will be done
Other Chinese media also carried comments from a deputy
research head at the country's housing ministry that there was
no plans to change property controls since current curbs,
particularly home purchase limits, have been effective.
"The question now is what Beijing is planning to do to
ensure stability in the property market in the longer run. They
have maxed out all the micromanaging-type of policies this
year," said Lee Wee-Liat, head of Asia property research at BNP
Weak earnings from earlier this week continued to weigh on
China-focused consumer counters. Tingyi Hol;dings and
China Resources Enterprises each slid 1.8 and 0.4
percent on the day.
BOTTOMS UP NO MORE
Chinese alcohol makers listed in the mainland tumbled
further after the official Xinhua news agency reported that
Hunan provincial authorities found as much as 1.04 milligrams
per kilogram (mg/kg) of plasticisers in samples of Jiugui
Plasticisers are additives that increase the fluidity of a
material, but are also toxic chemicals that can cause damage to
men's reproductive health and cause early female puberty when
consumed over a long period.
This according to Xinhua, was more than three times above
the health ministry's 0.3 mg/kg limit, but was within the 0.495
to 2.32 mg/kg range the China Alcoholic Drinks Association
listed in a statement on Monday, adding that higher-end
alcoholic drinks contain higher levels of plasticiser.
Jiugui's Shenzhen shares stayed suspended, as they have been
since Monday, but major players in the Chinese white spirits, or
baijiu sector, deepened a downward spiral on the month.
Wuliangye Yibin posted a sixth-straight loss,
diving 4.7 percent to its lowest since July 2010. It has now
slumped 18.3 percent in November, set for its worst monthly
showing in more than four years.
Bigger rival, Kweichow Moutai shed 0.6 percent
but finished off the day's lows for the fourth time this week,
with Thursday's intra-day low its lowest since April 11.
Moutai was up as much as 28 percent on the year at the end
of October, losses of 12.1 percent this month have seen this
year's gains cut to just 12.4 percent.
Shares of baijiu makers have been on the backfoot since last
month on worries over high inventory levels and fears that
strong anti-corruption moves would sap demand for the expensive
bottles often used as gifts to local government officials.