China shares slip as cash rates rise, Hong Kong sluggish

martes 4 de marzo de 2014 00:29 GYT

* HSI +0.4 pct, H-shares flat, CSI300 -0.9 pct

* Chinese banks sink after PBOC cash drain

* Zijin Mining spikes on soaring gold prices

* Vanke soars after approval for B to H share transfer

By Clement Tan

HONG KONG, March 4 (Reuters) - China shares slipped early on Tuesday, capping Hong Kong gains, with banks among the biggest index drags as cash rates rose following the central bank's use of a 28-day instrument for the first time since June to drain funds.

If losses hold, this would be the first loss for the Shanghai Composite Index in five days ahead of the National People's Congress that starts in Beijing on Wednesday, where policy targets for the year are expected to be announced.

At midday, the Shanghai Composite Index was down 0.8 percent in lacklustre volumes, while the CSI300 of the largest Shanghai and Shenzhen A-share listings fell 0.9 percent.

The Hang Seng Index rose 0.4 percent to 22,592 points, while the China Enterprises Index of the leading offshore Chinese listings in Hong Kong was flat. The mood remained rather cautious in global markets, with investors eyeing the Ukraine-Russia situation warily.   Continuación...