* HSI -0.4 pct, H-shares -0.8 pct, CSI +0.2 pct
* HK property weak again, but most cut losses in afternoon
* ICBC, BoCom weak ahead of Q3 earnings after market close
* StanChart ends flat, pares losses after Q3 earnings
By Clement Tan
HONG KONG, Oct 30 Hong Kong shares sank to their
lowest in almost two weeks on Tuesday, with most local
developers slipping further in the wake of fresh curbs on real
estate purchases in the territory.
Investors also took profits on Chinese banks, recent
outperformers after strong third-quarter earnings from three of
China's "Big Four" banks. The largest, Industrial and Commercial
Bank of China (ICBC) , is due to post its
results later on Tuesday.
The Hang Seng Index ended down 0.4 percent at
21,428.6 points, its third-straight loss, pushing the benchmark
to its lowest close since Oct. 17.
It is now down 1.8 percent from last Thursday's 2012 closing
high, but still up 2.8 percent in October.
The China Enterprises Index of the top Chinese
listings in Hong Kong shed 0.8 percent. In the mainland, the
Shanghai Composite Index and CSI300 Index of
the top Shanghai and Shenzhen listings each rose 0.2 percent,
their first daily gain in about a week.
Shanghai volume remained below its 30-day moving average,
but improved 13 percent from Monday partly after the Chinese
central bank injected a single-day record amount of cash into
the banking system in its regular open market operations,
sending China's short-term lending ratings tumbling.
Losses in Hong Kong came in the weakest bourse turnover
since Sept. 15, partly because massive storm Sandy shut U.S.
markets on Monday, dealers said.
"It's mostly range-trading today, but Chinese companies that
have posted good third-quarter earnings should get a lift if we
get a positive China PMI on Thursday," said Edward Huang, equity
strategist at Haitong International Securities.
Beijing is due to post its official PMI on Nov 1 at 0100
GMT. The report is expected to show factory activity accelerated
in October to its fastest pace in five months, strengthening
hopes that growth is recovering in the world's second-largest
In Hong Kong, ICBC and Bank of Communications
, China's fifth-largest lender, slipped 1.8
and 1.2 percent respectively ahead of their third-quarter
corporate earnings expected after markets close on Tuesday.
Losses on Tuesday trimmed their October gains to 9.8 and 7.4
percent respectively, but both are still trading at a 44 and 57
percent discount to its historical median 12-month forward
price-to-book value, according to Thomson Reuters StarMine.
In the past 30 days, analysts have upgraded their
earnings-per-share estimates for both banks by an average of
about 3 to 4 percent, according to StarMine.
Shares of Warren Buffett-backed Chinese automaker BYD Co Ltd
slumped 4.1 percent in Hong Kong and 1.2
percent in Shenzhen after it posted a 94 percent slide in
third-quarter net profit due to a slumping domestic market and
its money-losing solar energy business.
Asia-focused Standard Chartered closed flat,
paring losses after reporting at midday that operating profit
grew by a mid-single digit rate in the first nine months of the
year, keeping it on track for a 10th straight year of record
POSITIVE POLY REAL ESTATE EARNINGS BUOYS CHINA PROPERTY
On Tuesday, New World Developments led most Hong
Kong developers lower, slipping a further 2.8 percent after
sinking 6.4 percent on Monday. It is still up 87 percent on the
year, compared to the 16 percent rise on the Hang Seng Index.
The Hong Kong government late on Friday 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
Henderson Land ended down 0.4 percent and Cheung
Kong Holdings was 0.1 percent weaker, paring losses in
afternoon trade in a sign that weakness in the sector could have
bottomed out in the short term.
Sun Hung Kai Properties reversed early losses to
recover 0.8 percent.
The Chinese property sector was strong after the
second-largest player in the sector by market capitalization,
Poly Real Estate posted a 95 percent rise in
third-quarter earnings late on Monday.
Poly jumped 2.5 percent in Shanghai, while its larger rival
China Vanke gained 1 percent in Shenzhen. In Hong
Kong, China Overseas Land & Investment rose 1.6
percent, while China Resources Land firmed 1.9