(Updates to close)
* HSI inches down 0.1 pct, but capped by chart resistance
* H-shares slip 0.1 pct, CSI300 down 0.9 pct, Shanghai Comp
sheds 0.8 pct
* China banks weak on reports support infrastructure
* Sun Hung Kai Properties up ahead of better-than-expected
By Clement Tan
HONG KONG, Sept 13 (Reuters) - Hong Kong shares slipped for
the first time in six sessions in lackluster Thursday trade as
investors waited on a U.S. Federal Reserve meeting at which
policymakers could announce more measures to stimulate the
world's biggest economy.
Mainland Chinese markets were also weaker with industrial
sector shares dragged down by a commentary in the state media
warning about the longer-term risks to the Chinese economy if
Beijing were to launch a large stimulus plan.
The Hang Seng Index ended a choppy session down 0.1
percent to 20,047.6. It is up 1.2 percent this week after rising
1.6 percent last week largely on last Friday's 3.1 percent jump,
its best single day gain in almost a year.
The CSI300 Index of the top Shanghai and Shenzhen
listings shed 0.9 percent, while the Shanghai Composite Index
lost 0.8 percent. Both indices are down 0.8 percent on
the week after producing their best daily gains in eight months
Still, markets have have largely held onto gains posted last
week after China announced a raft of infrastructure project
approvals, compared to the downward spiral which followed
Beijing's last two interest rate cuts - suggesting investors are
taking the latest developments as a stronger signal of Beijing's
intent to shore up flagging growth.
"Last Friday's move up might be a bit violent, but you got
to take it in the context of how beaten down the markets have
been in the mainland this year," said a Shanghai-based manager
of a Qualified Foreign Institutional Investor (QFII) fund.
"Last week's reports were an important easing signal from
Beijing that they are still looking to stimulate the economy,"
the fund manager added, declining to be identified because he is
not authorised to speak to the media.
Since last Thursday, he has upped his allocation to equities
from 40 perccent of his portfolio to the maximum 70 percent
while reducing allocations to cash and fixed income.
The Chinese banking sector was hurt on Thursday by a report
in the state-run China Securities Journal saying that Beijing
has told banks to give credit support to construction projects
involving railways, roads and social housing.
This aggravated fears that bad debts could increase for the
Chinese banking sector, which is saddled by debts from Beijing's
stimulus in the aftermath of the 2008-09 financial crisis. Bank
of China shed 0.4 percent in Hong Kong and
0.7 percent in Shanghai.
Heavy machinery makers such as Shanghai-listed Sany Heavy
Industry and Shenzhen-listed Changsha Zoomlion
were also weaker, losing 3.1 and 2.9 percent apiece.
With Thursday's losses, Bank of China has given up its gains
in Shanghai from last Friday, but Sany and Zoomlion are both
NO iPHONE JOY FOR CHINA MOBILE
China Mobile slipped 1.3 percent and was the top
drag on the Hang Seng Index after Apple Inc's
announcement on Thursday that its new iPhone will go on sale
from this Friday with a bigger screen and 4G wireless
China Mobile is the mainland's biggest mobile operator, but
does not carry iPhones on its networks. Its smaller rivals that
do, China Unicom and China Telecom, each
rose 2 and 2.6 percent.
Ahead of its earnings for the fiscal year that ended in
June, Hong Kong property developer Sun Hung Kai Properties
(SHKP) rose 0.8 percent to close at its highest level
since March 26.
After markets closed, the world's second-largest real estate
developed posted a record underlying HK$21.7 billion underlying
profit, that bettered the HK$21 billion Thomson Reuters
StarMine's mean estimate of 19 analysts.
(Additional reporting by Vikram Subhedar; Editing by Sanjeev