* HSI +0.3 pct, H-shares +0.5 pct, CSI300 -0.1 pct
* Exporters lifted by strong China Nov exports, U.S. jobs
* Chinese property slides after Xiamen tightens pre-sales
* Chinese financials A-shares diverge vs H-shares after
By Clement Tan
HONG KONG, Dec 9 (Reuters) - China shares reversed gains
early on Monday, helping unwind a fast start to the week in Hong
Kong markets as China's robust November exports and benign
inflation prompted some short covering in growth-sensitive
The Chinese banking sector led a intra-day reversal of gains
in the mainland after the central bank released rules on Sunday
for trading of certificates of deposit -- its latest step
towards interest rate liberalisation.
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings was down 0.1 percent after rising by
as much as 0.7 percent at one point, while the Shanghai
Composite Index also slipped 0.1 percent.
The Hang Seng Index was up 0.3 percent at 23,810.7
points. The China Enterprises Index of the top offshore
Chinese listings in Hong Kong rose 0.5 percent after rising by
as much as 1.4 percent earlier.
"Flows tapered off after the early morning rush. We are
going to need a more definitive catalyst for the market to
meaningfully move any higher from here," said Jackson Wong,
Tanrich Securities' vice-president for equity sales.
"As a policy signal, the various headlines over the weekend
and today suggest Beijing could be moving faster than anybody is
expecting on financial reforms. But reforms will hurt the
banking sector in the short run," Wong added.
While the banking sector as a whole was sluggish in the
mainland, there were mostly gains in the offshore market.
China Minsheng Bank slipped 0.6 percent in
Shanghai and climbed 1.7 percent in Hong Kong, but both are off
their respective day's highs. Agricultural Bank of China
(AgBank) sank 0.8 percent in Shanghai and
was flat in Hong Kong.
Most non-banking financials were helped by several other
news reports alluding to a faster pace of financial reforms.
China Pacific Insurance Group Co (CPIC)
climbed 2.4 percent in Hong Kong and 0.6 percent in Shanghai.
Chinese regulators reaffirmed commitments to widen the
yuan's trading band at the appropriate time, the official China
Securities Journal reported on Monday, citing deputy central
bank governor Pan Gongsheng.
The same newspaper reported Yan Qingmin, a vice chairman at
the China Banking Regulatory Commission as saying plans are
afoot for bank bankruptcy rules regulations to be introduced to
strengthen deposit protection.
China will launch a 401K-style tax-deferred retirement
pension investment scheme in January 2014, state media reported
on Monday, potentially boosting stock and bond market
performance as new funds enter China's capital markets.
Investors will be looking to an annual economic work meeting
due to be held some time this week, along with two others for
urbanization and agricultural policy, where China's leaders will
convene to set economic growth targets to gauge the execution of
Beijing's bold reform agenda.
Official data on Monday showed China's annual inflation
unexpectedly slowed to 3 percent in November from an eight-month
high, following data on Sunday that showed exports spiked 12.7
percent from a month earlier, handily beating forecasts. More
data is due later this week.
Port operator China Merchant Holdings spiked 4.6
percent, while global supply chain manager Li & Fung
climbed 0.8 percent, both largely on short covering.
Both were also helped by a solid U.S. jobs report last
Friday, which however weighed on the Hong Kong property sector
on fears that any consequent reduction in the U.S. Federal
Reserve's asset purchases could spur a correction in property
New World Development sank 0.6 percent, while
Henderson Land fell 0.7 percent. Bank of East Asia
, a Hong Kong-focused bank, sank 0.9 percent.
Chinese property developers sank on fears that more curbs
are in store. In Hong Kong, Country Garden and China
Resources Land sank nearly 3 percent. Poly Real Estate
shed 1.1 percent in Shanghai.
Several second-tier cities have issued fresh home purchasing
curbs in the last few weeks. Local media reported on Monday that
authorities in the eastern coastal city of Xiamen in Fujian
province has circulated revised regulations further tightening
pre-sales permits from Jan. 1.