* HSI -0.2 pct, H-shares -0.5 pct, CSI300 +0.9 pct
* CR Power buoys China IPP jump, positive earnings trigger
* Tingyi extends slide after earnings miss, DB downgrade
* China property A-shares lifted as policy mist clears
By Clement Tan
HONG KONG, March 19 (Reuters) - Hong Kong shares ended at a
3-1/2-month low in thin trade on Tuesday trade, reversing modest
midday gains, as lingering concerns over the stability of the
euro zone kept many investors sidelined.
Attention was largely focused on a few sectors such as power
producers being driven by corporate results.
Onshore Chinese markets rebounded modestly, led by the
property sector as policy uncertainty eased after the official
China Securities Journal reported Beijing city may introduce new
home sales curbs targeted at the secondary market by end-March.
The Hang Seng Index slipped 0.2 percent to its lowest
close since Dec. 4 after failing at chart resistance seen at
around 22,185, which is the bottom end of a gap that opened up
between Monday and last Friday.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings climbed 0.9 percent from Monday's two-month
low. The Shanghai Composite Index rose 0.8 percent from
its lowest close since Dec. 28 set on Monday.
The China Enterprises Index of the top Chinese
listings in Hong Kong shed 0.5 percent as turnover in the
territory sank to the lowest in more than a week. Shanghai
volume stayed below its average in the last month.
Much of the trading interest on Tuesday focused on Chinese
power producers. China Resources Power jumped 8.1
percent in more than triple its 30-day average volume. It has
now surged 44 percent from an Oct. 15 nadir.
"This rally in Chinese IPP (independent power producers)
share prices on declining coal prices is a theme that has been
played for a long time and a short-term correction could be
due," said Wang Aochao, UOB-Kay Hian's Shanghai-based head of
"They could be vulnerable to a correction in the next beta
rally or to any coal price increases, particularly since some of
the coal producers are trading at pretty attractive valuations
after recent losses," Wang added.
The gains on Tuesday were CR Power's best since December
2008, lifting its sector rivals in both on- and offshore
markets, and came after several brokers upgraded their target
price for its stock following its positive 2012 earnings.
Analysts at JP Morgan raised their earnings estimates for
2013 and 2014 by 5 to 10 percent, lifting their target price for
CR Power by some 8 percent, taking the company's higher capex
guidance to suggest further gains in the longer term.
CR Power has gained around 15 percent so far this year after
a 32 percent jump in 2012 and is trading at an 8 percent
discount to its forward 12-month earnings multiple, according to
Thomson Reuters StarMine.
Shares of China Shenhua Energy, due to post 2012
earnings on March 22, shed 1.2 percent in Hong Kong.
Down 17 percent on the year, shares of the country's biggest
coal producer are trading at a 26 percent discount to its
historical median forward 12-month earnings multiple, according
Huaneng Power jumped 5.3 percent in
Hong Kong and 2.8 percent in Shanghai ahead of its 2012 final
results later in the day. In the last 30 days, 6 of 26 analysts
have downgraded their full-year 2012 earnings-per-share
estimates for Huaneng by an average of 3 percent.
But while earnings for CR Power impressed, those from
consumer-related sectors disappointed. Food and beverage giant
Tingyi's earnings miss triggered a series of broker
downgrades, sending its shares down 3.4 percent.
Deutsche Bank analyst Anne Ling downgraded her rating for
the stock from "buy" to "hold" while trimming her price target
by 20 percent, expecting lower beverage and noodle sales in