* HSI +0.4 pct, H-shares -0.2 pct, CSI300 +0.7 pct
* H-share index sink to 12th straight daily loss
* High yielding counters lead HK rebound from oversold
* Chalco dives to 4-1/2-year low ahead of HSCE exclusion
By Clement Tan
HONG KONG, June 14 (Reuters) - Hong Kong shares rebounded
from multi-month lows on Friday, led by high yielding stocks
including the property sector, even though they ended the week
lower for a fifth time in a row.
Mainland Chinese markets also bounced off six-month lows
as strength in technology and pharmaceutical stocks countered
losses in the banking and energy sectors. Volume was weak as
money rates stayed tight.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings rose 0.7 percent after ending Thursday at its
lowest since December. The Shanghai Composite Index
gained 0.6 percent. This week, they shed 2.7 and 2.2 percent,
The Hang Seng Index rose 0.4 percent to 20,969.1
after closing on Thursday at its lowest since October. The China
Enterprises Index of the top Chinese listings reversed
midday gains to slip 0.2 percent.
A twelfth straight loss sank the H-share index to its most
technically oversold level since August 2011 as it slumped 5
percent this week in its worst weekly loss in more than a year.
The Hang Seng benchmark lost 2.8 percent.
It was the fifth-straight weekly loss for the two
Shanghai volume on Friday neared 2013 lows as China's
short-term funding costs jumped to their highest levels since
early 2012. A hardline stance by the central bank against
injecting liquidity has made the market reverse expectations of
monetary easing, traders said.
"Whether Thursday's low is the bottom in this sell-off is
not as important as the fact that investors should now be taking
this time to accumulate some quality names," said Larry Jiang,
chief investment strategist at Guotai Junan International
On Friday, Hong Kong property developers were among the
leadng percentage risers among benchmark components. New World
Development shares rose 2.4 percent from Thursday's
nine-month closing low.
New World's shares have now fallen 21 percent from a high on
May 8 and are trading at a 31 percent discount to its historical
forward 12-month earnings before Friday, according to Thomson
Link Real Estate Investment Trust (REIT), among
the hardest hit as investors bailed on fears that the U.S.
Federal Reserve could taper its aggressive monetary stimulus,
jumped 3.2 percent in its best daily gain in five months.
With effect from Monday, Galaxy Entertainment will
take Esprit's place on the Hang Seng Index, while PICC
Group will replace Aluminum Corporation of China
(Chalco) on the China Enterprises Index.
In Hong Kong, Galaxy jumped 4.8 percent, Esprit gained 2
percent, PICC Group rose 2.5 percent, while Chalco dived 7.5
percent to its lowest close since October 2008. Volumes for all
four counters surged towards the end of Friday's session as
funds based on these indexes adjust their holdings.
CASH SQUEEZE IN CHINA
Some banking names were weaker in the mainland as a cash
crunch lingered, with China's Ministry of Finance failing for
the first time in nearly two years to sell all of the 15 billion
yuan worth of nine-month bills.
In Shanghai, China Merchants Bank slid 0.9
percent, while Bank of Communication declined 0.7
Official Chinese newspapers on Friday blamed Thursday's
steep losses on hot money flows. A Shanghai Securities News
report, citing the views of an economist with Galaxy Securities,
said that a rate cut was no solution to stopping those flows
which were being underpinned by yuan appreciation prospects.
With growth anemic and chances of stimulus slim,
growth-sensitive energy and material counters were weaker. China
Shenhua Energy fell 2.1 percent in Hong Kong and 0.8
percent in Shanghai.