* HSI -0.5 pct, H-shares -0.7 pct, CSI300 +0.2 pct
* HK developers in the red again after curbs announced last
* ICBC, BoCom weak ahead of Q3 earnings after market close
* BYD hammered after reporting 94 pct slide in Q3 net profit
By Clement Tan
HONG KONG, Oct 30 (Reuters) - Hong Kong shares weakened in
morning trading on Tuesday, with local developers slipping
further into the red in the wake of curbs on real estate
purchases in the territory announced last Friday.
Chinese banks were among the losers, as profit taking
emerged following gains prompted by strong third-quarter
earnings from three of China's "Big Four" banks. The fourth,
Industrial and Commercial Bank of China (ICBC)
, is due to post its results later on Tuesday.
The Hang Seng Index went into the midday trading
break down 0.5 percent. It is now down 1.8 percent from last
Thursday's 2012 closing high. The China Enterprises Index
of the top Chinese listings in Hong Kong shed 0.7
In the mainland, the CSI300 Index of the top
Shanghai and Shenzhen listings edged up 0.2 percent, while the
Shanghai Composite Index was up 0.1 percent.
"It's mostly range-trading at the moment, but Chinese
companies that have posted good third-quarter earnings should
get a lift if we get a positive China PMI on Thursday," said
Edward Huang, equity strategist at Haitong International
Beijing is due to post its official PMI on Nov 1 at 0100
GMT. The PMI were expected to show factory activity accelerated
in October to its fastest pace in five months, strengthening
hopes that growth is recovering in the world's second-largest
ICBC and Bank of Communications ,
China's fifth-largest lender, slipped 1.4 and 1.8 percent
respectively ahead of their third-quarter corporate earnings
expected after markets close on Tuesday.
Losses on Tuesday trimmed their October gains to 10.3 and
6.8 percent respectively, but both are still trading at a 44 and
57 percent discount to its historical median 12-month forward
price-to-book value, according to Thomson Reuters StarMine.
In the past 30 days, analysts have upgraded their
earnings-per-share estimates for both banks by an average of
about 3 to 4 percent, according to StarMine.
Shares of Warren Buffett-backed Chinese automaker BYD Co Ltd
slumped 5.5 percent in Hong Kong and 1.3
percent in Shenzhen after posting a 94 percent slide in
third-quarter net profit due to a slumping domestic market and
its money-losing solar energy business.
CHINA & HK PROPERTY SHARE PRICE DIVERGE
On Tuesday, New World Developments slipped a
further 2.7 percent after sinking 6.4 percent on Monday. It is
still up 88 percent on the year, compared to the 16 percent rise
on the Hang Seng Index.
The Hong Kong government had late on Friday imposed a 15
percent tax on foreign and corporate real estate buyers and
stiffened the resale stamp duty fees in the hope of calming the
city's property prices, which have surpassed historical highs
hit in 1997.
Henderson Land slipped 1.1 percent and Wharf
Holdings lost 1.5 percent, but Hang Lung Properties
bucked weakness in the sector, up 1.1 percent after
also outperforming on Monday with a 1.8 percent loss.
Dealers cited the company's sizeable exposure to the
mainland Chinese property market.
The Chinese property sector was strong, particularly in
mainland markets, on Tuesday after the second-largest player in
the sector by market capitalization, Poly Real Estate
posted a 95 percent rise in third-quarter earnings
late on Monday.
Poly jumped 2.4 percent in Shanghai, helping the Shanghai
property sub-index rise 1.3 percent.