Hong Kong shares edge toward 6th weekly gain, China slips


(Updates to midday)

* HSI up 0.5 pct, H-shares climb 0.8 pct * CSI300 down 0.4 pct, Shanghai Comp sheds 0.3 pct

* Chinese banks still strong in HK, CCB set for best week in11

* Chinese property A-share weak, land market stillreportedly weak

By Clement Tan

HONG KONG, Oct 12 (Reuters) - Hong Kong shares rose to afive-month high on Friday, set for a sixth-straight weekly gainas investors put money in growth-sensitive sectors onexpectations of more governmental support for the Chineseeconomy.

The Hang Seng Index went into the midday break up 0.5percent, keeping it up 0.4 percent on the week. The ChinaEnterprises Index of the top Chinese listings in HongKong rose 0.8 percent and is up 3.5 percent this week.

Mainland Chinese markets slipped for a second day, with theproperty sector a key drag after state-run China SecuritiesJournal reported that the physical land market has not yet fullyrecovered.

The CSI300 Index of the biggest Shanghai andShenzhen listings slipped 0.4 percent and is flat on the week.The Shanghai Composite Index lost 0.3 percent, but isstill up 0.5 percent this week.

While optimism has improved, investors still want to seemore substantial signs of government policy to boost growth.

"Sentiment has changed for the better, but the market isstill looking for details on the nature of Beijing's policybefore committing more to the rally," said Jackson Wong, TanrichSecurities' vice-president for equity sales.

Investors will also be watching a slew economic data due tobe released in the coming days for fresh clues on how long theslowdown in the world's second-largest economy will last.

Beijing is expected to post September trade data on Saturdayand inflation on Monday. Money supply and loan growth data isexpected by Monday.

Higher inflation is seen likely to weaken Beijing's hand formore monetary policy loosening.

Major policy changes are seen unlikely until after theCommunist Party's once a decade leadership change when the 18thNational Congress meeting takes place on Nov. 8.


In Hong Kong, Chinese banks were once again stronger. ChinaConstruction Bank (CCB) climbed 1.6 percent. Bank ofChina rose 0.7 percent, while Industrial andCommercial Bank of China (ICBC) gained 0.4 percent.

CCB is up 5.1 percent in Hong Kong this week, its bestweekly gain in 11 weeks, after Central Huijin, a unit of China'ssovereign wealth fund, said late on Wednesday that it had boughtShanghai-listed shares of the "big four" banks and wouldcontinue to increase its stakes.

Resources-related names were mostly stronger. AluminumCorporation of China (Chalco) led percentage gainsamong Hang Seng Index constituents, jumping 4.7 percent.

But the Chinese steel sector slipped after the EconomicInformation Daily newspaper in China reported that the country'sChina's 80 biggest steel companies posted aggregate losses inthe first eight months of this year.

Angang Steel lost 2 percent in HongKong and 0.6 percent in Shenzhen.

The property sector also dragged the onshore Chinese marketslower. Poly Real Estate lost 1.9 percent, whileChina Vanke shed 0.8 percent.

Li Ning jumped 5.4 percent after China'sbest-known sportswear brand said its chief financial officer hasresigned, the latest deparure from senior management as thecompany grapples with a slowdown in the world's second-largesteconomy.

(Additional reporting by Vikram Subhedar; Editing by SimonCameron-Moore)

((clement.tan@thomsonreuters.com)(+852 2843-6392)(ReutersMessaging: clement.tan.thomsonreuters.com@reuters.net))