* HSI -0.3 pct, H-shares -0.7 pct, CSI300 -1.7 pct
* Everbright Securities private placement stokes IPO jitters
* Belle, Li Ning down after earnings, GOME rises
* AgBank, Bank of China down ahead of 2012 earnings
By Clement Tan
HONG KONG, March 26 (Reuters) - China shares sank, weighing
down Hong Kong markets, on fears about a possible wave of new
stock-offerings by brokerages after Everbright Securities
obtained approval for a private share placement.
Everbright sank 3.6 percent in Shanghai after
the China Securities Regulatory Commission approved plans for it
to raise up to 8 billion yuan ($1.29 billion) in the mainland to
boost the company's core capital, IFR reported.
The CSI300 of the leading Shanghai and Shenzhen
listings went into the midday trading break down 1.7 percent,
while the Shanghai Composite Index was off 1.5 percent.
If losses persist, this would be their respective worst daily
showing since March 4.
The Hang Seng Index slipped 0.3 percent, while the
China Enterprises Index of the top Chinese listings in
Hong Kong shed 0.7 percent. Aside from possible China
fundraising moves, another factor erasing some of Monday's gains
was renewed concern about Cyprus.
"The fear is that Everbright's private placement is the
first of many fundraising attempts, which could inevitably
involve a public offering," said a Shanghai-based trader with a
major Chinese brokerage.
The Chinese central bank's decision to drain 32 billion yuan
from the money markets through 28-day bond repurchase agreements
triggered hatter about a possible rate hike, another trader
Mainland markets were also hurt by a report in the official
China Securities Journal that Chinese banks have restricted the
pace and scale of lending to the property sector as part of
greater governmental risk controls.
The same report also said rural banks have been required to
reduce their lending for property development. The banking
regulator is also working on more directives to reduce systemic
risks in the property sector.
Mid-sized lender China Minsheng Bank
sank 4 percent in Shanghai and 1.1 percent in Hong Kong,
trimming 2013 gains to 34 and 16 percent, respectively.
Losses for Everbright on Tuesday took its shares to the
lowest in a week. Citic Securities , China's
largest-listed brokerage, fell 2.2 percent in Hong Kong and 2.5
percent in Shanghai.
Haitong Securities fell 3.9 percent in
Shanghai and 0.9 percent in Hong Kong ahead of its 2012
corporate earnings expected later in the day. The stock is down
16 percent in Hong Kong in 2013, compared with a 5 percent slide
for the China Enterprises Index.
In the last 30 days, two of 16 analysts who follow Haitong
have downgraded their earnings-per-share estimates by an average
of 32 percent, according to Thomson Reuters StarMine.
In 2012, China's 114 brokerages together earned less than
Wall Street bank Goldman Sachs did, and the combined
profit for the Chinese firms was down 16 percent from a year
earlier, industry data showed in mid-January.
EARNINGS, EARNINGS, EARNINGS
Corporate earnings remained a big focus on Monday, with at
least 38 Hong Kong-listed companies due to report final 2012
results later in the day. Of the 58 percent of companies that
have reported in Hong Kong, 52 percent have missed expectations,
according to StarMine.
China's top footwear retailer Belle International
fell 1.6 percent, while sportswear retailer Li Ning
tumbled 4.3 percent after both posted disappointing 2012
GOME Electrical Appliances, however, jumped 3.5
percent after China's second-largest electric appliance retailer
posted a smaller-than-expected full-year loss, while also
providing aggressive guidance for 2013.
Agricultural Bank of China (AgBank)
slipped 0.5 percent in Hong Kong and 1.4 percent in Shanghai,
while Bank of China shed 0.6 percent in
Hong Kong and 0.7 percent in Shanghai ahead of their 2012