* HSI -0.5 pct, H-shares -0.9 pct, CSI300 +0.2 pct
* ICBC down 2.1 pct after Goldman exit, vs 2.5 pct discount
* PICC P&C slides after $938.3 million rights issue
* China property up, urbanization meeting to be reportedly
held by June
By Clement Tan
HONG KONG, May 21 (Reuters) - Hong Kong shares fell from a
3-1/2-month high on Tuesday, hurt by a series of fund raising
moves and Goldman Sachs' exit from Industrial and Commercial
Bank of China, while China markets eked out a fifth straight
The Hang Seng Index slid 0.5 percent at 23,366.4
points after closing on Monday at its highest since early
February. The China Enterprises Index of the top Chinese
listings in Hong Kong shed 0.9 percent.
The Shanghai Composite Index and the CSI300
of the leading Shanghai and Shenzhen listings each
reversed midday losses to end up 0.2 percent. Five days of gains
helped both rebound from their 50-day moving averages in
improved volume, suggesting further gains could be in store.
Shanghai volume decreased for the first time in four days as
tax payments by companies put pressure on short term money
market rates, but was still some 30 percent above its 20-day
"I think it's still too early to say this constitutes a
fundamental shift in sentiment," said Wang Ao-chao, UOB-Kay
Hian's Shanghai-based head of research.
"The moves have been very sector-specific on hopes of
sectoral policy changes as the new Chinese leadership convenes
various meetings in the upcoming months leading to the plenum,"
On Tuesday, the 21st Century Business Herald reported that a
previously-postponed national meeting on urbanisation strategy
may now be held at the end of May or early June, sparking gains
for property counters.
China Overseas Land climbed 2.1 percent to its
highest in more than a week in Hong Kong, while China Vanke
rose 0.8 percent in Shenzhen and Poly Real Estate
gained 0.6 percent.
For a second day, Chinese coal counters jumped, while
mainland power producers slumped due to concerns that potential
curbs on lower quality coal imports could help demand for
smaller coal producers, while crimping the margins of power
producers that rely on cheaper foreign imports.
Huaneng Power slumped 6.1 percent in its worst
daily loss in 14 months, while Yanzhou Coal jumped
another 4.3 percent in Hong Kong after rising 4.1 percent on
REBOUND TO SPUR DEALS?
Shares of Chinese banks were weaker as Industrial and
Commercial Bank of China (ICBC) fell 2.1
percent in Hong Kong after Goldman Sachs ended a seven-year
investment in the country's largest lender.
The magnitude of ICBC's loss in Hong Kong was smaller than
the 2.5 percent discount Goldman offered its remaining 1.585
billion H-share stake, pointing at robust demand despite being
priced at the top end of the marketed HK$5.47-$5.50 range.
PICC Property & Casualty fell 2.6 percent in Hong
Kong after it announced plans for a rights issue to raise a
combined net 5.76 billion yuan ($938.28 million) to strengthen
its capital base and improve its solvency margin.
Cosco Pacific jumped 4.1 percent in Hong Kong
after it agreed to sell its stake in COSCO Container Industries
Ltd to one of its sister companies wholly owned by its
state-owned parent China Ocean Shipping (Group) Company.
Gains on the day helped Cosco Pacific move into positive
territory for the year. It is now up 1.8 percent in 2013,
compared to the 3.1 percent rise on the Hang Seng Index.
The rebound from April lows in Hong Kong could lead to more
companies tapping the equity markets for funds.
Two of the biggest initial public offerings will make their
listing debut this week, with China Galaxy Securities
on Wednesday and Sinopec Engineering on Thursday.