* HSI -0.2 pct, H-shares -0.6 pct, CSI300 -0.5 pct
* Shanghai volume at weakest in nearly a year
* Citic Pacific hammered after injunction against Clive
* Foxconn up; Digitimes says new iPhone, iPad due in
By Clement Tan
HONG KONG, Nov 20 (Reuters) - Chinese shares fell in weak
trading on Tuesday, dragging down Hong Kong markets, after data
showed that direct foreign investment in China fell for a 10th
straight month and big Chinese consumer firms reported weak
The Hang Seng Index closed down 0.2 percent, while
the China Enterprises Index of the top Chinese listings
in Hong Kong shed 0.5 percent in their first loss in three days.
In the mainland, the CSI300 Index of the top
Shanghai and Shenzhen listings had a fourth-straight loss,
sliding 0.5 percent to its lowest close since March 2009. The
Shanghai Composite Index shed 0.4 percent.
Foreign direct investment inflows into China fell 3.5
percent in the first 10 months of the year from a year ago,
extending the longest run of decline in three years, affecting
sentiment in the market.
Shanghai volume was at its lowest in almost a year, as money
rates inched higher as the central bank allowed a slight net
drain of funds, with banks and companies preparing for a spike
in demand for cash at the end of the month.
Hong Kong turnover was the highest in three sessions, but
was still some 11 percent below its average in the past month.
"There is no support in Hong Kong today partly due to the
low turnover," said Edward Huang, an equity strategist with
Haitong International Securities.
He added that the weak FDI data did little to boost
confidence, already fragile in the A-share market after the
Shanghai Composite Index dipped below 2,000 in intra-day trade
Chinese financials led the reversal, as losses for Ping An
Insurance deepened following a confirmation
by HSBC that it is in talks to sell a $9.3
billion stake in China's second-largest insurer.
Ping An shed 1.2 percent in Hong Kong and 3.2 percent in
Shanghai, partly suffering from weak A-share markets. Chinese
insurers such as Ping An are seen as proxy plays on mainland
stock markets given their high levels of investment there.
The Chinese consumer sector was again mostly weak after GOME
Electrical Appliances posted late on Monday weak
third-quarter earnings, following the lead of Parkson Retail
Group and Tingyi Holdings.
GOME and Tingyi each lost 3.7 percent, while Parkson lost
another 5 percent after diving 8.8 percent on Monday.
Food and beverage giant Tingyi slid to HK$22.10, its lowest
close since Aug. 22, also hurt by a JP Morgan downgrade after
its underwhelming third quarter earnings on Monday.
JP Morgan analysts downgraded Tingyi from "neutral" to
"underweight", while reducing their June 2013 price target from
HK$18.00 to HK$16.00, saying the premium it typically trades
over its sector peers is now "stretched".
"We find decelerating sales growth in beverages
disappointing, especially in the case of Tingyi which typically
trades at a premium to the sector due to its stable double-digit
sales growth," they said in the same note.
Citic Pacific tumbled 4.3 percent after it filed a
court injunction against Australian mining tycoon Clive Palmer
over disputed royalties at the $8 billion Sino Iron project in
Western Australia, the latest in a long list of hurdles for the
China's Longfor Properties sank 4.2 percent on
concerns of a change of management control after local media
reported its chairwoman's recent divorce from her husband.
TENCENT, FOXCONN INTERNATIONAL STRONG
Bucking broader market weakness, Chinese internet giant
Tencent Holdings rose 2.3 percent, rebounding from a
two-month low set on Monday after rival, Nasdaq-listed Sina Corp
SINA.O, soared 7.8 percent overnight.
Chinese media reported that Alibaba Group, the
country's largest e-commerce company, planned to buy a stake in
Sina's popular "Weibo" microblogging service.
Foxconn International gained 3.3 percent in
relatively heavy volume after IT news outlet Digitimes reported
Apple suppliers will enjoy a particularly strong first
quarter next year with Apple expected to introduce its next
generation iPad and iPhone series in mid-2013.
There has been no official confirmation that Foxconn
International, which assembles handsets for the likes of Nokia
Oyj, Huawei Technologies Co Ltd and ZTE Corp
, is now also an Apple supplier, but a Citi
report in early November had raised hopes of that.