(Updates to close)
* HSI crawls up 0.2 pct, powered by HK property sector
* H-shares slip 0.2 pct, CSI300 down 0.6 pct, Shanghai sheds
* Investors take profits on Chinese infrastructure after
* China property A-shares weak, Nanjing restricts price
By Clement Tan
HONG KONG, Sept 11 (Reuters) - Hong Kong shares closed
higher on Tuesday to advance for a fourth straight day, tracking
gains in European markets after a German court said it would
rule on the the legality of the European bailout fund as
scheduled on Wednesday.
Other than the German verdict, investors were also waiting
the outcome of a two-day Federal Reserve meeting that ends on
Thursday, with expectations that the U.S. central bank will opt
for a third round of quantitative easing to boost the economy.
The Hang Seng Index reversed midday losses to end up
0.2 percent, but turnover in Hong Kong sank 25 percent from
Monday to slip below its 20-day moving average for the first
time in five sessions.
"Hong Kong property developers are the top choice today,
with investors unwilling to push the rally in Chinese stocks any
more today," said Jackson Wong, Tanrich Securities'
vice-president for equity sales.
Among Hong Kong developers, Sun Hung Kai Properties
rose 1.3 percent, while Henderson Land
gained 1.7 percent.
Mainland Chinese markets snapped a three-day winning streak,
with infrastructure-related plays among the weakest after a
rally in the last three sessions fuelled by reports that Beijing
had approved projects worth $150 billion.
The CSI300 Index of the top Shanghai and Shenzhen
listings fell 0.6 percent, while the Shanghai Composite Index
lost 0.7 percent. The China Enterprises Index of
the top Chinese listings in Hong Kong slipped 0.2 percent.
General gloom over China's economy -- on track for a
seventh-straight quarterly slowdown -- also weighed on sentiment
despite August loan growth in China exceeding expectations.
Trade and industrial output figures earlier this week were
anaemic while inflation rose, potentially limiting Beijing's
scope for monetary easing.
"The latest set of data suggests the slowdown in the Chinese
economy could worsen, so it's tough to look beyond the short
term," said Edward Huang, equity strategist at Haitong
A BREATHER FOR CHINA INFRASTRUCTURE STOCKS?
Infrastructure-related stocks, among the biggest advancers
in the past three sessions, gave up some of their gains to rank
among the biggest losers on Tuesday.
Anhui Conch Cement , which surged 15.5
percent in Shanghai in the three days before Tuesday, shed 3.1
percent on Tuesday. It lost 1.1 percent in Hong Kong after
jumping 12.5 percent in the last three sessions.
Chinese excavator maker Sany Heavy Industry shed
1.5 percent in Shanghai, while Changsha Zoomlion
shed 1.7 percent in Shenzhen and 4.5 percent in Hong
Several brokerages have questioned whether the
infrastructure projects reportedly approved by China's top
economic planning agency amounted to new investments, saying
some were approved earlier as part of local government plans.
But Huang at Haitong International said Beijing's backing
"Investors must be ready to trade on policy announcements,
like last Friday. It may or may not amount to anything new, but
that it comes from Beijing means they are certain to be
implemented, compared to local governments with strained
finances," he said.
The Chinese property sector was hurt by a local media report
that the city of Nanjing restricted price increases to 5
percent. The Shanghai property sub-index slipped 1.1
percent, with Poly Real Estate down 1.5 percent.
(Additional reporting by Vikram Subhedar; Editing by Simon