(Corrects second-to-last paragraph to say that Sunac China is not a shareholder in Greentown China)
* HSI -0.1 pct, H-shares +0.2 pct, CSI300 -0.4 pct
* Greentown, Sunac rise after earnings reports
* Chinese power sector strong on hopes for reform benefits
By Grace Li
HONG KONG, Aug 26 (Reuters) - China shares fell again on Tuesday as investors sold recent outperformers ahead of a deluge of initial public offerings (IPOs), while the Hong Kong market was tepid with its benchmark index hovering around a more than six-year high.
At midday, the CSI300 of the leading Shanghai and Shenzhen A-share listings and the Shanghai Composite Index each were down 0.4 percent. The Shanghai benchmark stood at 2,219.52 points. Both swung between negative and positive territory in morning trade.
The Hang Seng Index, which closed on Monday at its highest since May 2008, was 0.1 percent lower at 25,134.96 points. The China Enterprises Index of the top Chinese listings in Hong Kong was the only major index with gains at midday, edged up 0.2 percent.
For now, Hong Kong "is locked in a narrow range," said Linus Yip, strategist at First Shanghai Securities. "It has a good chance to go higher after the consolidation."
"The market overall still has the expectation that there will be more easing policies coming up in mainland China. And the European Central Bank, after a meeting, also said that maybe they would take more steps to give the market more stimulus," Yip said.
Chinese airlines, which surged on Monday afternoon, retreated on Tuesday. China Eastern Airlines and China Southern Airlines both shed more than 3 percent. Air China, whose interim results are due later in the day, was down 3 percent.
Recent outperforming media companies suffered losses. People.cn sank 3.5 percent, as did JiShi Media .
Chinese power producers were broadly stronger after a report in the 21st Century Business Herald said a main part of the energy sector's next five-year plan is reform letting the market decide prices.
China Yangtze Power, top index boost, jumped 5.4 percent to a one-year high, also helped by its announcement late on Monday that controlling shareholder China Three Gorges Corp signed an agreement with China National Nuclear Corp on nuclear power projects.
Some Chinese property developers posted gains bolstered by earnings. Poly Real Estate Group rose 0.7 percent.
Greentown China Holdings soared 7.3 percent, despite reporting on Monday a 67 percent drop in first half net profit, which it had flagged. Sunac China Holdings, which proposed to buy a stake in Greentown in May, jumped 5.5 percent.
In a research note after the results came out, Barclays said Greentown's earnings miss had already been priced in and its analysts "appreciate management's de-stocking strategy". (Editing by Richard Borsuk)