* HSI -0.4 pct, H-shares -0.6 pct, CSI300 -0.3 pct
* Shanghai midday volume near 2012 lows, HK turnover steady
* China banks, property weak, bad loans reportedly to triple
* Espirit jumps, tracking surge in rights issue
By Clement Tan
HONG KONG, Nov 7 Hong Kong and China shares were
headed for a third-straight loss on Wednesday, led down by
China's banking and property sector after state media reported
that bad loan ratios at the country's top banks may triple by
the end of the year.
Hong Kong turnover held steady at midday as U.S. election
results pointed to a victory for President Barack Obama. Volume
in Shanghai neared 2012 lows ahead of a once-in-a-decade
political transition in China that formally starts with the 18th
Communist Party Congress on Thursday.
The Hang Seng Index went into the midday trading
break down 0.4 percent, while the China Enterprises Index
of the top Chinese listings in Hong Kong slipped 0.6
On the mainland, the Shanghai Composite Index and
the CSI300 Index of the top Shanghai and Shenzhen
listings each lost 0.3 percent.
"There's a fair amount of waiting in the market this week,
but I think investors will only come back into the Hong Kong
market after more clarity emerges from the 18th Party Congress
meeting in Beijing next week," said Edward Huang, equity
strategist at Haitong Securities International.
Industrial and Commercial Bank of China (ICBC)
slipped 0.4 percent in Hong Kong and 0.5 percent in
Shanghai. Agricultural Bank of China (AgBank)
lost 1.2 percent in Hong Kong and 0.8 percent in
The official Financial News newspaper, run by China's
central bank, reported on Wednesday that bad debts could soar in
the steel, ship building and solar sectors as well as among
exporters, local governments and property developers.
The report cited Orient Asset Management Corp - one of four
firms charged with cleaning up bad debts at China's banks.
The Chinese property sector was a standout underperformer
among sectors in the mainland, shrugging off Hong Kong-listed
Evergrande's strong sales in October.
While Evergrande jumped 4.5 percent, most of its sector
peers were weaker. The Shanghai property sub-index was
down 1 percent, with Poly Real Estate down 2.1
Underscoring weak sentiment in the A-share market, shares of
Sinohydro Group Ltd were down 2.9 percent in
Shanghai despite the Chinese electricity provider unveiling a
share buyback plan at a premium of almost 30 percent to its
Tuesday closing price.
Europe-focused retailer Esprit Holdings limited
losses on the Hang Seng Index, surging 6.8 percent as its rights
issue made its trading debut on Wednesday, up 26
percent at midday.