* HSI +0.2 pct, H-shares -0.6 pct, CSI300 +1.8 pct
* HK shut on Friday for holiday, reopens on Monday
* HK indexes post first weekly loss in a month
* Tencent at record close after strong Q1 triggered upgrades
* Weak Q1 tips Parkson Retail to lowest close since January
By Clement Tan
HONG KONG, May 16 (Reuters) - China shares posted their best
daily gain in weeks on Thursday, limiting losses in the Hong
Kong market, as investors chased a rebound in the property and
financial sectors and extended a rally in technology-related
Earnings drove some of the most significant moves. Tencent
Holdings closed at a record high after posting robust
quarterly earnings, while Parkson Group sank to its
lowest in more than seven years after a weak first quarter.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings ended up 1.8 percent in its best percentage
gain since April 24. The Shanghai Composite Index .SSEC rose 1.2
percent, its best day since May 3.
The Hang Seng Index inched up 0.2 percent, while the
China Enterprises Index of the top Chinese listings in
Hong Kong shed 0.6 percent. With Hong Kong markets shut on
Friday for a public holiday, they snapped a three-week winning
streak, down 0.8 and 2.4 percent, respectively.
"It's still very much a waiting game where China policy is
concerned, because the new leadership needs time to stamp its
authority and set its own direction," said Larry Jiang, chief
investment strategist at Guotai Junan International Securities.
"But it's inconceivable that Japan and U.S. stocks will
continue to rise while ignoring China," Jiang added. At $7.8
billion, Hong Kong turnover on Thursday was its best since May
8, but is still some way off peaks seen in the first quarter.
Chinese property stocks listed in the mainland were
stronger, buoyed by a report in the official Shanghai Securities
News that regulators have eased some restrictions on the
refinancing of firms with some investment in real estate.
China Vanke jumped 5.1 percent in Shenzhen in
its first gain in four days. Poly Real Estate rose
4.3 percent in Shanghai after closing on Wednesday at its lowest
since April 12.
There was also some respite for Ping An Insurance
, rising 3 percent in Shanghai after closing on
Wednesday at its lowest since early December. Its Hong Kong
listing fell 1.1 percent.
It is still down 3 percent on the week in Shanghai, roiled
earlier this week by a temporary underwriting ban for its
brokerage unit and a dispute between Shanghai Jahwa
and Ping An's trust unit, which owns a stake in the Chinese
China's foreign exchange regulator said on Thursday it
granted a net $137 million in new investment quotas to overseas
institutions in April, the smallest monthly amount since
Tencent Holdings soared 6.5 percent in its best day in 28
months after posting a 37 percent rise in first quarter profit
that was broadly in line with market estimates, while tripling
the number of active users for its mobile chat application.
Its Hong Kong shares were also helped by a slew of price
target upgrades by several major brokerages. Bank of
America-Merrill Lynch upgraded its target price by almost 10
percent on higher estimates of its games, e-commerce and mobile
On the other hand, Parkson Retail Group sank 8.5 percent to
their lowest closing level since late January 2006 as investors
punished its worsening operating leverage after same store sales
growth declined 2 percent in the first quarter, while rental
expenses jumped 31 percent.
Deutsche Bank analysts cut their price target for Parkson's
Hong Kong listing by 23 percent, expecting negative operating
leverage to linger into the third quarter this year after the
company management cut its 2013 growth targets.