5 de noviembre de 2014 / 5:03 / hace 3 años

China, Hong Kong shares fall on profit-taking, weak business activity

* HSI -0.5 pct, H-shares -0.9 pct, CSI300 -0.4 pct

* Mainland index faces profit-taking pressure

* Power stocks strong on ultra-high voltage power project plan

* Hong Kong PMI falls to 47.7 in Oct from 49.8 in Sept

By Chen Yixin and Adam Jourdan

SHANGHAI, Nov 5 (Reuters) - China shares fell on Wednesday due to profit-taking, but energy-related shares limited falls after the country’s power authority said work had started on an ultra-high voltage power project.

The Shanghai Composite Index was down 0.5 percent at 2,418.8 points by the midday break, while the CSI300 of the leading Shanghai and Shenzhen A-share listings eased 0.4 percent.

“The index is adjusting, it faces profit-taking pressures,” said Wang Weijun, analyst at Zheshang Securities in Shanghai, adding the index was expected to hover around recent levels as investors take a wait-and-see attitude on blue chip shares.

“For now, the most important support for the index are blue chip shares, but we still need time to see the shares’ potential,” he said.

Shipping shares were among the biggest losers in the index, after posting large gains on Tuesday. China Shipping Haisheng Co Ltd slumped 5.1 percent and COSCO Shipping Co Ltd dropped 4.2 percent.

Strength in power stocks helped temper a sharp fall in the index after the State Grid Corporation of China said on Tuesday the country had begun construction on a large-scale, ultra-high voltage (UHV) power project, which will help alleviate air pollution problems.

Shenzhen Energy Group Co jumped to its 10 percent daily limit and Guangxi Guidong Electric Power Co gained 6.1 percent.

Hong Yuan Securities leapt 6.9 percent on Wednesday after it said it received approval from the securities regulator for its assets restructuring plan.

Hong KONG WEAK

Hong Kong shares ended lower in the morning, dragged down by weak economic data.

By midday, the Hang Seng Index was down 0.5 percent at 23,723.58 points. The China Enterprises Index of the top Chinese listings in Hong Kong fell 0.9 percent.

Analysts said the fall was caused by weakness in private business activity. The Hong Kong Purchasing Managers Index (PMI) fell to 47.7 in October from 49.8 in September, hitting a 37-month low as political protests weighed on output, a private survey showed on Wednesday. A reading above 50 indicates expansion.

Analyst said investors were taking profits due to uncertainties ahead of the upcoming APEC Summit in Beijing and the mid-term elections in the United States.

“Actually the market rebounded in the past few weeks. In October, the Hang Seng Index quite outperformed,” said Andy Wong, senior investment analyst at Harris Fraser (International) Ltd in Hong Kong. “Now it’s time to have some corrections.”

Casino shares led the morning’s losses after the industry posted its worst month on record in October for gambling revenues. By midday, Galaxy Entertainment fell 3.4 percent, Sands China dropped 3.6 percent, and Wynn Macau declined 2 percent. (Additional reporting by Shanghai Newsroom; Editing by Jacqueline Wong)

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