* HSI +0.1 pct, H-shares -0.4 pct, CSI300 -0.4 pct
* CSI300FS sub-index down 1 pct on profit taking
* MMG Ltd shares up 6.5 pct on Peru copper mine deal
By Natalie Thomas
BEIJING, April 14 (Reuters) - China stocks fell on Monday, with financial shares losing 1.1 percent as investors locked in gains after last week’s announcement that Hong Kong and China investors can buy shares in companies listed on each other’s bourses.
Uncertainty in global markets weighed on investors’ minds in Hong Kong, where shares had a muted morning, hovering around neutral for most of the first few hours of trade.
By midday, the Hang Seng Index was up 0.1 percent at 23,015.46 points. The China Enterprises Index of the top Chinese listings in Hong Kong dropped 0.4 percent.
The CSI300 index of the largest Shanghai and Shenzhen A-share listings was down 0.4 percent, while the Shanghai Composite Index was down 0.4 percent at 2,121.5 points.
China financial shares began the week with a downward adjustment in the CSI300 financial sub-index after it had jumped to its highest intraday level since mid-December late last week.
The jump came on the news that the Hong Kong and China securities regulators had reached an agreement to allow investors in their respective regions to trade shares in each other’s markets.
China Pacific Insurance Group Ltd lost 2.2 percent, while China Citic Bank Corp was also down 2.2 percent.
The fact that at the moment the market is already quite well funded, meant that the shares didn’t have much space to climb said Cao Xuefeng, head of research Huaxi Securities in Chengdu.
“The short-term impact of this announcement on funding is already over; now we’re seeing a period of adjustment.”
In Hong Kong, securities firms were also down as investors banked profits from last week while they waited for further details about how the policy would be implemented.
Haitong Securities Co Ltd dropped 3.5 percent while CITIC securities Co Ltd shed 2.9 percent.
“A lot of Hong Kong brokerage firms are still trying to figure out how the new policies will benefit them so the stocks are jumping up and down more for speculative reasons,” said Jackson Wong, Tanrich Securities Vice President for equity sales.
On the mainland, some of the strongest performers were auto stocks, with shares in Chongqing Changan Auto touching 10 percent, their highest daily trading limit, after the company reported robust earnings for 2013 and predicted strong net profit growth in the first quarter of this year.
Great Wall Motor Co Ltd also saw a robust performance, gaining 4.5 percent by lunch, after it published encouraging sales data for March earlier in the month.
Shares in MMG Ltd surged 6.5 percent, pushing the stock to its highest intraday level since early December, after a consortium led by the company purchased an interest in the Las Bambas copper mine in Peru from Glencore Xstrata in a $6 billion cash deal. (Editing by Jacqueline Wong)