* HSI +1.3 pct, H-shares +1.4 pct, CSI300 flat
* H-share index looks for 1st gain in 13 days
* Fast money roll into HK large caps battered by QE worries
* Clean energy firms aided by China's anti-pollution pledge
* Huijin's A-share purchase lifts NCI, Everbright Bank
By Clement Tan
HONG KONG, June 17 (Reuters) - Hong Kong shares, which have
fallen the past five weeks, started the new one on a positive
note as buyers in search of short-term gains came into battered
Mainland China markets lingered near six-month lows. Cement
and coal counters were hit by measures - announced late Friday
by the State Council - to combat air pollution, which will curb
growth of energy-sapping industries.
At midday, the CSI300 of the top Shanghai and
Shenzhen A-share listings was flat. The Shanghai Composite Index
inched up 0.1 percent in persistently weak volumes with
cash rates staying tight.
That may remain the case after Financial News, a newspaper
backed by the People's Bank of China, reported on Monday that
the central bank is unwilling to inject funds into the interbank
market because banks in difficulty have likely bypassed
regulatory caps on lending.
The Hang Seng Index was up 1.3 percent at 21,251.2
points. The China Enterprises Index of the leading
Chinese listings in Hong Kong, which has fallen the past 12
sessions, climbed 1.4 percent.
Gains on Monday lifted the H-share index from its most
technically oversold level since August 2011. It had slumped 5
percent last week, its worst weekly showing in more than a year.
Last week was also the fifth straight losing one for the H-share
"The fast money is rolling into the defensive, Hong Kong
large caps that have been hit quite badly by the QE tapering
talk in the last few weeks," said Steven Lam, an analyst with
Karl Thomson Securities.
U.S. bond yields have spiked, roiling currency and stock
markets, particularly in emerging markets, after Federal Reserve
chairman Ben Bernanke jolted investors on May 22 by saying the
bank might "take a step down" in the pace of bond purchases in
A two-day meeting of the U.S Federal Reserve policy-making
panel ends on Wednesday, with markets looking to Bernanke for
fresh hints if and when the central bank will pare its
aggressive monetary stimulus.
High yielding, defensive Hong Kong property developers were
broadly higher, although real estate investment trusts (REITs),
recipients of much of the inflows from waves of central bank
easing since 2008, underperformed on the day.
Henderson Land climbed 3.7 percent in a
second-daily gain, but Link REIT slipped 0.5 percent.
Cheung Kong Holdings rose 3.3 percent after the
company said it will buy Dutch waste processing firm RAV Water
Treatment I B.V. for 943.68 million euros ($1.26 billion), as
part of an overseas expansion drive that has targeted
infrastructure assets offering steady income.
Hong Kong and China Gas jumped 4.1 percent,
extending a rebound from a seven-month closing low last
Thursday. It is still down 11 percent from a May 20 peak and
currently trading at a 6 percent premium in its 12-month forward
earnings multiple, according to Thomson Reuters StarMine.
CHINA ENERGY SHARES IN SPOTLIGHT
China Everbright Bank climbed 2.4 percent in
Shanghai, while New China Life Insurance
soared 4.4 percent in Hong Kong and 4.8 percent in Shanghai
after China state investor Central Huijin bought 100 million
yuan worth of A-shares in those companies.
Monday's gain reduced Everbright's decline in 2013 to 1.6
percent, and spurred rises for other mid-sized banks whose share
prices have been under pressure from the tight interbank funding
Alternative energy stocks were lifted by moves by China's
cabinet to fight air pollution, which also involves a pledge to
support the sector. In Hong Kong, GCL-Poly Energy
spiked 6.6 percent to a three-month high and China Longyuan
jumped 4.6 percent.
In Shanghai, Anhui Conch Cement tumbled 2.5
percent and Yangquan Coal fell 2.1 percent.