(Updates to close)
* HSI slips 1.3 pct on day, 5.1 pct for the week
* CSI300 sheds 1.5 pct, has weekly drop of 2.4 pct
* Anta slammed after warning of decline in orders
* China developers weak on doused easing expectations
By Clement Tan
HONG KONG, May 18 (Reuters) - Hong Kong shares slid another
1.3 percent on Friday, inflicting a second consecutive weekly
loss of more than 5 percent as escalating Europe woes dragged
down financial stocks and underwhelming U.S. economic data
increased risk aversion.
The Hang Seng Index, which shed 5.3 percent last
week, lost another 5.1 percent this one - producing the worst
two-week period since September.
Mainland Chinese markets were also weaker and finished a
second consecutive week in the red after officials doused easing
expectations on the pivotal property sector in China despite
data showing home prices declined for a second-straight month.
Shanghai bourse volume was some 11 percent below its 20-day
average, while in Hong Kong, was average and some way off the
heightened levels seen in the sell off last year.
Strength in some defensive stocks in Hong Kong further
pointed to caution, but helped the Hang Seng cut losses on the
day, finishing at 18,951.9, near the day's highs after bouncing
off chart support seen at 18,575-18,627, a range that was strong
support in December.
The China Enterprises Index of the top Chinese
listings in Hong Kong shed 1.3 percent on Friday and 5.6 percent
for the week. The retreat took the China Enterprises Index into
the red for the year, down 3.6 percent.
Its mainland peers, the CSI300 Index and Shanghai
Composite Index are up 9.7 and 6.6 percent,
respectively, in 2012.
On Friday, the CSI300 Index lost 1.5 percent, while the
Shanghai Composite slipped 1.4 percent, taking their weekly
losses to 2.4 and 2.1 percent respectively.
"Markets are nervous. Things might be starting to look
similar to last May on the charts, but the tone is quite
different now," said Tan Eng-Teck, a Singapore-based investment
manager at Treasury Asia Asset Management.
"Then, we were still in tightening mode and people were
telling you to buy. But right now, they will tell you to sell.
The risks from the European situation are well-known and will
probably get worse," he added.
HSBC Holdings, Europe's largest bank, tumbled 3.1
percent to HK$63.75, its lowest close since Jan. 19 and slipping
below its 200-day moving average, currently at about HK$65.64,
for the first time in a month.
With the stock the biggest weight on the Hang Seng
benchmark, further weakness could lie in wait.
Europe-focused retailer Esprit Holdings slumped
4.1 percent to hit its lowest since early February in strong
volume. Esprit still ranks among the year's top performers among
Hang Seng Index components, climbing 25 percent.
Anta Sports Products Ltd plunged 9.2 percent on
Friday to HK$6 in more than four times its 30-day average volume
after the Chinese sportswear brand warned that orders taken for
the fourth quarter of 2012 fell by more than 10 percent in value
terms year-on-year as competition intensified.
Credit Suisse analysts downgraded their earnings per share
estimates for Anta by more than 10 percent to HK$5.70 while
maintaining their "underperform" rating on the stock, saying
they expect the company to face greater margin pressure.
PROPERTY SOURS CHINA OUTLOOK FURTHER
Chinese developers were hit after data on Friday showed home
prices in China fell for a second month in April compared with
year-ago levels, as downtrend takes hold in the market while the
government has vowed to continue its more than two-year campaign
to make housing more affordable.
Late on Thursday, China's housing ministry said it will
stick to its stance of curbing speculative property demand while
supporting purchases for home use, dashing hopes of policy
Sentiment was further soured on Friday by an announcement
late on Thursday that China's state-owned companies reported an
8.6 percent profit decline in the first four months compared
with a year earlier, another impact of the slowdown in the
world's second-biggest economy.
Investors will be looking to the HSBC China Flash PMI for
May, a preliminary survey of manufacturing data activity the
world's second-largest economy expected on May 24, for fresh
clues on the extent of the slowdown.
In Hong Kong, Evergrande lost 4.2 percent, Agile
Property slid 1.4 percent while Hang Seng Index
component, China Overseas Land & Investment declined
Shanghai-listed Poly Real Estate and
Shenzhen-listed China Vanke each shed 1.2 percent.
With property a sizable part of the Chinese economy, Chinese
banks, seen barometers of growth, were also weaker. Industrial
and Commercial Bank of China (ICBC) lost
0.9 percent in Hong Kong and 1.9 percent in Shanghai.
(Editing by Richard Borsuk)