* SSE -0.5 pct, CSI300 -0.9 pct, HSI +1.3 pct, HSCE +0.6 pct
* China financials down, transport sector soars on oil
* Hong Kong positive on Fed "patient" stance on rates
BEIJING, Dec 19 (Reuters) - Shanghai shares retreated from their highest intraday level in four years on Friday, while Hong Kong stocks rallied for a second day on positive global sentiment.
During morning trading, the Shanghai Composite Index hit 3,093.34, its highest point since November 2010 boosted by gains in China shipping stocks on slumping oil prices. But falls in financials and manufacturing later erased the gains.
The Shanghai Composite Index lost 0.5 percent, to 3,042.77 points, while the CSI300 index fell 0.9 percent, to 3,317.39 points at the end of the morning session.
A raft of upcoming new listings have sapped interest in existing shares and regulatory criticism of margin trading practices appears to have continued to drag on financials.
But transportation stocks stayed in the spotlight, gaining from weak oil prices. China COSCO <601919.SS., China Shipping Development, China Shipping Container Lines and China Merchants Energy Shipping jumped by their 10 pct daily limit in Shanghai.
Meanwhile, Spring Airlines aims to raise 1.82 billion yuan in a Shanghai initial public offering.
Hong Kong stocks extended broad gains, underpinned by a U.S. rally after the Federal Reserve adopted a "patient" approach toward the timing of interest rate hikes.
The Hang Seng index added 1.3 percent, to 23,122.26 points.
The Hong Kong China Enterprises Index gained 0.6 percent, to 11,392.75.
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 121.30.
A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.
China CSI300 stock index futures for December fell 1.1 percent, to 3,324.4, a spread of 7.0 points versus the current value of the underlying index.
Total volume of A shares traded in Shanghai was 29.01 billion shares, while Shenzhen volume was 11.76 billion shares.
Total trading volume of companies included in the HSI index was 0.9 billion shares. (Reporting by Jake Spring and Shanghai Newsrooom; Editing by Jacqueline Wong)