* HSI +0.4 pct, H-shares -0.1 pct, CSI300 +1.3 pct
* China property A shares rebound on report of easing of
* Tencent jumps after positive Q1 earnings triggers upgrades
* Negative earnings drive Parkson to lowest in more than 7
By Clement Tan
HONG KONG, May 16 (Reuters) - Chinese shares appeared headed
for their best daily gain in two weeks on Thursday, lifting the
Hong Kong market, as investors chased a rally in property,
brokerage and technology-related counters.
Earnings drove some of the most significant moves. Tencent
Holdings jumped 5 percent to a record high after
posting robust quarterly earnings, while Parkson Group
dived 8.5 percent after a weak first quarter.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings ended a choppy morning session up 1.3 percent,
while the Shanghai Composite Index rose 1 percent as
bourse volumes improved from Wednesday. Both had started the day
The Hang Seng Index climbed 0.4 percent, while the
China Enterprises Index of the top Chinese listings in
Hong Kong slipped 0.1 percent. With Hong Kong markets shut on
Friday for a public holiday, they are set to snap 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 but it's inconceivable that
China equities will continue to be ignored," said Larry Jiang,
chief investment strategist at Guotai Junan International
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 climbed 2.9 percent in Shenzhen, set
for its first gain in four days. Poly Real Estate
rose 2.3 percent in Shanghai after closing on Wednesday at its
lowest since April 12.
There was also some respite for Ping An Insurance
, rising 2.2 percent in Shanghai after closing on
Wednesday at its lowest since early December. Its Hong Kong
listing slipped 0.7 percent.
It is still down 3.8 percent on the week in Shanghai, roiled
earlier this week by a temporary underwriting ban for its
Tencent Holdings was the top boost on the Hang Seng Index
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, steep losses on Thursday for supermarket
operator Parkson Retail Group sank its shares to their lowest in
more than seven years as investors punished its worsening
operating leverage after same store sales growth declined 2
percent in the first quarter, while rental expenses jumped 31
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.