* HSI +0.5 pct, H-shares +0.9 pct, CSI300 -0.4 pct
* China's top two insurers climb after strong earnings
* Zoomlion jumps after newspaper apologizes for critical
* Chong Hing Bank dips after Yue Xiu offer for 75 pct stake
By Clement Tan
HONG KONG, Oct 28 (Reuters) - Hong Kong shares rebounded
from a seven-week low in lackluster volumes early on Monday, led
by some financial and energy counters after the weekend brought
upbeat quarterly earnings.
Mainland Chinese markets slipped, some investors still
worried there could be a cash crunch even though money rates
eased from four-month highs.
The central bank's two scheduled open market operations this
week - on Tuesday and Thursday - are awaited after there were no
cash injections the past three sessions despite spiking demand.
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings was down 0.4 percent, while the
Shanghai Composite Index slipped 0.2 percent.
The Hang Seng Index, which ended Friday at its lowest
since Sept. 6, climbed 0.5 percent at 22,807.1 points. The China
Enterprises Index of the top Chinese listings in Hong
Kong rose 0.9 percent.
"The focus this week will be earnings, China's money rates
and the PMI number at the end of the week," said Jackson Wong,
Tanrich Securities' vice-president for equity sales.
"Flows are quite slow today and investors will likely stay
on hold for the rest of this week with so much China policy
uncertainty at this point," Wong added.
A top Chinese leader promised "unprecedented" economic and
societal reforms at the Communist Party's much anticipated
plenum meeting next month, the official Xinhua news agency
reported on Saturday.
Beijing is due to release its October manufacturing
purchasing managers index on Friday. A private preliminary
survey came in at a seven-month high last week, driven by strong
A positive reading on Friday could cement expectations the
Chinese central bank will tighten money supply, with economic
growth for the world's second-largest economy now likely to meet
the official goal of 7.5 percent.
Mid-sized lenders were among Monday's biggest drags on
onshore Chinese indexes. China Minsheng Bank fell
2.1 percent in Shanghai and Ping An Bank 2.8
percent in Shenzhen after the sector outperformed last week.
Chinese property A-shares were also weaker after the
Shanghai vice mayor said the city will increase the supply of
affordable housing following September home-price rises. Vanke
fell 1.9 percent in Shenzhen.
But there were gains for China's two largest insurers. China
Life Insurance and Ping An Insurance
posted robust quarterly results, thanks to
improved financial market investment returns.
China Construction Bank (CCB) shares
were also buoyed by in-line quarterly earnings. On Sunday, CCB
became the first among the "Big Four" Chinese banks to report.
The rest are due on Wednesday.
Strong earnings also lifted the shares of China Oilfild
Services by 7.9 percent in Hong Kong and
5.4 percent in Shanghai.
Zoomlion Heavy Industry jumped 5.8
percent in Hong Kong and 7.3 percent in Shenzhen after a
newspaper said it had not thoroughly fact-checked its earlier
report that disparaged the Chinese state-owned construction
Chong Hing Bank tumbled 8.3 percent after a unit
of China's Guangzhou city government agreed to buy up to
three-quarters of the Hong Kong bank for HK$11.64 billion ($1.5
billion) at a 4.6 percent discount to Friday's closing price.