Hong Kong shares end slightly lower, China plays strong

HONG KONG, Oct 10 (Reuters) - Hong Kong shares endedmarginally lower on Wednesday, tracking weakness in other Asianbourses on concerns over U.S. corporate earnings, but strengthin China plays helped limit the benchmark's losses.

The Hang Seng Index ended the day down 0.1 percent at20,919.6 points. The China Enterprises index of toplocally listed mainland firms rose 0.7 percent.

On the mainland, the CSI300 index of top Shanghaiand Shenzhen listings and the Shanghai Composite bothended the day 0.2 percent higher.


* A report that China would introduce subsidies for vehiclesales in rural areas lifted auto stocks. Dongfeng Motor Group CoLtd rose 4.9 percent while GAC Group rose4.5 percent.

* Expectations that Central Huijin, a unit of China'ssovereign wealth fund, would continue to increase its stake inbanks lifted shares of ICBC and Bank of China

more than 1 percent each.

* Shares of ZTE Corp , the target of a U.S.congressional report that urged American companies to stop doingbusiness with Chinese telecom equipment makers, recovered fromtwo days of losses and ended 5.9 percent higher.

Several brokerages, including JPMorgan and Goldman Sachs,issued reports saying U.S. investigations are unlikely to havemuch impact on ZTE's profits, with investors switching focus to4G spending, which is expected to benefit the company.

(Reporting by Vikram Subhedar; Editing by Anne Marie Roantree)

((vikram.subhedar@thomsonreuters.com)(+852 28436975))


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