* HSI -0.2 pct, H-shares +0.9 pct, CSI300 -0.5 pct
* Hong Kong developers slump on fears curbs will crimp sales
* AgBank, CCB, Sinopec buoyed by positive Q3 earnings
* Hong Kong turnover lowest in almost two weeks, Shanghai
By Clement Tan
HONG KONG, Oct 29 (Reuters) - Hong Kong shares edged lower
on Monday, as local developers tumbled on fears that new
measures to cool soaring property prices will sap demand, but
broader losses were limited by earnings-driven strength in
The Hang Seng Index ended down 0.2 percent at
21,511.1 points, the lowest close since Oct. 17. The China
Enterprises Index of the top Chinese listings in Hong
Kong outperformed, rose 0.9 percent.
On the mainland, the CSI300 Index of the top
Shanghai and Shenzhen listings slipped 0.5 percent, while the
Shanghai Composite Index was down 0.4 percent. Both
indices closed at their lowest since late September.
Shanghai volume was the lowest in about one week. Hong Kong
turnover sank to the lowest in almost two weeks, with the Hong
Kong property and Chinese banking sectors seeing the bulk of the
"There's some rotation from Hong Kong developers into the
Chinese banking sector today after CCB and AgBank posted pretty
good results over the weekend," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
Late on Friday, the Hong Kong government imposed a 15
percent tax on foreign and corporate real estate buyers and
stiffened the resale stamp duty fees in the hope of calming the
city's property prices, which have surpassed historical highs
hit in 1997.
"I think many were quite surprised by the severity of the 15
percent special duty, so they took profits on the sector, which
has done very well this year so far," Wong added.
Shares of New World Development, which before
Monday were up more than 100 percent in 2012, tumbled 6.4
percent to their lowest close since Sept. 28. Monday's fall was
the stock's biggest daily loss in almost seven months.
Both Henderson Land and Sino Land also
slumped 6.4 percent. Sun Hung Kai Properties lost 5.1
percent and Cheung Kong Holdings shed 4.7 percent.
In a report on Monday, Citi analysts said any dip in the
sector represented "an enhanced buying opportunity", believing
that stabilising home prices will remove policy risks and asset
EARNINGS PROMPT GAINS FOR CCB, AGBANK, SINOPEC
In Hong Kong, China Construction Bank (CCB)
rose 1.2 percent and Agricultural Bank of
China (AgBank) jumped 3.1 percent after
posting positive third-quarter corporate earnings over the
Analysts had expected the profitability of banks to be hit
by two central bank interest rate cuts since June. But the
earnings had been supported by China's landmark decision to let
lenders set their own loan rates.
Still, CCB's 12 percent rise in third-quarter net profit
growth lagged AgBank's 16 percent gain and Bank of China's
(BOC) 17 percent increase.
BOC rose 1 percent in Hong Kong on Monday, while Industrial
and Commercial Bank of China (ICBC), which on Tuesday
will be the last "Big Four" Chinese bank to post third-quarter
earnings, inched up 0.6 percent.
China Petroleum and Chemical Corp (Sinopec)
climbed 2.9 percent in Hong Kong and 1.1
percent in Shanghai after posting a smaller-than-expected drop
in third-quarter earnings over the weekend.
A positive China October purchasing managers' index (PMI)
reading, expected on Wednesday, could further suggest a
stabilising of the Chinese economy and buoy interest in
growth-sensitive sectors, particularly those with encouraging
Data over the weekend showed China's industrial profits rose
7.8 percent in September from a year earlier to 464.3 billion
yuan ($74 billion), the National Bureau of Statistics said on
Saturday, compared with a 6.2 percent drop in August.