Shanghai shares off 2-month high after cash drain, Hong Kong flat

martes 18 de febrero de 2014 00:29 GYT

* HSI flat, H-shares -0.7 pct, CSI300 -1.0 pct

* 1st use of 14-day forward repo in 8 months spooks investors

* Fosun Pharmaceutical spikes after Chindex deal

* Agriculture outperforms, state media spurs policy hopes

By Clement Tan

HONG KONG, Feb 18 (Reuters) - Shanghai shares fell from a two-month high early on Tuesday, weighing on Hong Kong stocks, after China's central bank drained 48 billion yuan ($7.92 billion) from the country's money market.

This comes as cash rates fell after official data on Saturday showed China's banks issued the biggest amount of loans in a single month in four years. The People's Bank of China (PBOC) had drained 450 billion yuan last week as it continued to taper a pre-Lunar New Year cash injection.

At midday, the Shanghai Composite Index was down 0.5 percent at 2,125 points after having closed on Monday at its highest since Dec. 18. The CSI300 of the largest Shanghai and Shenzhen A-share listings sank 1 percent.

The Hang Seng Index was flat, while the China Enterprises Index of the leading offshore Chinese listings in Hong Kong shed 0.7 percent. Both had finished Monday at their highest closing levels in about three weeks.   Continuación...