* HSI +0.2 pct, H-shares +0.5 pct, CSI300 +1.1 pct
* China indexes lifted by property, banking stocks
* Li & Fung up 16.7 percent on good earnings
(Updates to midday)
By Alice Woodhouse and Chen Yixin
HONG KONG/SHANGHAI, March 21 (Reuters) - Hong Kong shares
edged higher on Friday, helped by strong gains from Li & Fung
after solid earnings, but investors remained bearish on the
China indexes had bigger gains than Hong Kong's, boosted by
large-cap financial and property plays, though traders see
little potential for further rises given worries about credit
By midday, the Hang Seng Index was up 0.2 percent at
21,217.52 points. It was on track for a third straight weekly
loss, being down 1.5 percent this week.
The China Enterprises Index of the top Chinese
listings in Hong Kong rose 0.5 percent, leaving it down 0.5
percent for the week.
While that index tracking mainland enterprises has dropped
almost 20 percent since the start of December, investors on
Friday bought selected stocks based on their earnings.
The CSI300 of the largest Shanghai and Shenzhen
A-share listings rose 1.1 percent, and the Shanghai Composite
Index was up 0.8 percent at 2,009.29 points.
On the week, the CSI300 has fallen 0.6 percent and while the
Shanghai composite index rose 0.2 percent.
"Sentiment remains bearish, they are still speculating on
small names or individual names but as a whole they are not
willing to push the market higher," said Alex Wong, director of
asset management at Ample Finance Group.
"People do not want to take substantial risk in this kind of
uncertainty, so that's why we will see Chinese shares continue
to underperform the world, " Wong said.
On Friday, shares in Hong Kong-listed global sourcing firm
Li & Fung soared 16.9 percent as investors cheered
better-than-expected earnings and focused on a plan that
includes the spin-off of its unit that manages brands and
Shares in China's GOME Electrical Appliances
jumped 8.3 percent after the company reported
better-than-expected 2013 profit.
China Mobile, the world's largest carrier by
subscribers, fell for a second day, dropping 4.4 percent after
its 2013 profit missed analyst expectations.
On mainland markets, the largest developer China Vanke
gained 3.2 percent after its biggest shareholder
China Resources raised its stake in the company to 15 percent.
Banking shares also supported Friday's rise. Shanghai Pudong
Development Bank Co jumped 5.2 percent and
Industrial Bank Co. rose 2.7 percent.
(Editing by Richard Borsuk)