HK shares weaker as banks, energy drag; China steady

(Updates to midday)

* HSI down 0.6 pct, 21,000 proving stubborn resistance

* Shanghai Comp up 0.4 pct, continues to outperform HK

* Shares of large-cap banks, oil majors hit by profit-taking

* Alibaba Group may take HK-listed unit

By Vikram Subhedar

HONG KONG, Feb 10 (Reuters) - Hong Kong shares came under pressure on Friday as large-caps, particularly banks and oil majors, suffered a bout of profit-taking while Shanghai's benchmark remained firm supported by continued expectations of selective policy easing in Beijing.

Weaker Chinese trade data, which highlighted the twin effects of a global slowdown as well as factory shutdowns for Lunar New Year holidays, had little immediate impact on share prices.

Imports in January sank 15.3 percent from a year earlier while exports fell 0.5 percent over the same period, the worst showing since November 2009, underscoring the government's steady shift to pro-growth policies and steps to support small and medium enterprises (SMEs).

Hong Kong's Hang Seng Index fell 0.6 percent to 20,888.68, faltering again around the 21,000 level that is proving a stiff obstacle. That level marks the 250-day moving average as well as intra-day highs last August and September.

On the mainland, the Shanghai Composite held steady rising 0.4 percent to 2,357.98.

Both indexes are still up on the week and month as investors have returned to the market after a dismal 2011 in which the benchmarks lost about a fifth of their value.

"China's financial markets are going to recover," said Lee Boon Keng, head of Julius Baer's investment solution group.

"It'll be driven by selective easing by the central bank. Although they are not going to loosen on real estate, they are aware of some of the unintended consequences of tightening to SMEs, for example," he said.

On the day, insurers China Ping An and China Life, among the biggest beneficiaries of stronger mainland markets, provided the biggest boosts to the Shanghai benchmark. Ping An rose 1.7 percent while China Life rose 0.8 percent.

Broker Citic Securities, whose profits are closely geared to investment sentiment among China's dominant retail investor base, rose 1.6 percent.

Its Hong Kong-listed shares eased 0.7 percent, however, after hitting a three-month high on Thursday as investors took money off the table.

TAKING PROFITS

Profit-taking also weighed on Chinese energy majors, among the year's best performers till last week, led by PetroChina which dropped 2.2 percent. Refiner Sinopec fell 2.3 percent.

Bucking the overall weaker trend in Hong Kong were consumer electronic counters, led by Lenovo Group which hit a fresh three-and-a-half year high after reporting strong results. It shares are up 9.7 percent this week.

Shares of Alibaba.com remained suspended in Hong Kong, pending an announcement from parent Alibaba Group.

Sources told Reuters that the parent may take the Hong Hong-listed unit private and is working with Yahoo on an asset-swap deal.

Traders are on the lookout for an index rebalancing announcement for the Hang Seng as well as the China Enterprises Index that is expected after the market close.

According to BNP Paribas, Macau gaming counters Sands China and Wynn Macau are likely candidates for inclusion into the Hang Seng Index, marking the first time the fast-growing casino industry will find representation.

The addition of either company would spark a rush from passive investors such as exchange-traded funds which track indexes to buy the shares. (Editing by Jacqueline Wong)