* HSI down 0.1 pct, CSI300 climbs 0.9 pct
* Turnover marginally better in both HK and China
* Tingyi tests 4-1/2 mth high, broker upgrades after H1
results
* CNOOC slips, posts 19 pct fall in H1 net profit at midday
HONG KONG, Aug 21 (Reuters) - Hong Kong shares dipped on
Tuesday as uncertainty about the euro zone weighed on benchmark
heavyweight HSBC Holdings, but food firms and retailers gained
on encouraging earnings results and reports of possible steps to
boost consumer spending.
The reports of further consumer sentiment steps as well as
other media reports of more planned fiscal stimulus by regional
governments helped put mainland Chinese markets on track for
their best showing in more than a week in improved volumes.
Chinese food and beverage giant Tingyi Holdings
was among those finding favour, extending gains after its
first-half gross margin rose, helping trigger broker upgrades on
Tuesday.
"Companies like Tingyi are the ones that have seen high
growth rates in the past, but like China, are slowing down.
Investors will have to get used to their slower rates of growth,
but they still offer some defensive cover," said Edward Huang,
an equity analyst with Haitong International Securities.
The Hang Seng Index was down 0.1 percent at 20,078.3
by midday -- above the 20,000 level it has managed to keep for
all but one day since Aug. 6.
Shares of HSBC Holdings Plc, Europe's largest
bank, shed 0.9 percent amid uncertainty whether European Central
Bank will intervene after it moved to squash speculation about
the shape its planned bond-buying programme will take.
The China Enterprises Index of the top Chinese
listings in Hong Kong rose 0.4 percent. The CSI300 Index
of the top Shanghai and Shenzhen listings was up 0.9
percent, while the Shanghai Composite Index gained 0.6
percent.
Tingyi jumped 5.5 percent to HK$22 after earlier testing a
4-1/2 month high. Before Monday, Tingyi was down more than 18
percent on the year but is now down 6.8 percent, compared to the
8.9 percent gain on the Hang Seng Index.
Deutsche Bank analysts upgraded the stock from "hold" to
"buy" while increasing their target price by 16 percent from
HK$20.60 to HK$23.90.
"(Tingyi's earnings) turnaround was driven by low input
costs and, more importantly, market share gains," they said in a
report dated Aug. 21, while adding this is the first time Tingyi
has held the biggest market share in noodles, tea, water and
juice sectors.
Shenzhen-listed alcohol producer Wuliangye rose
2.1 percent, on track for a second-straight day of gains after
posting a 50 percent increase in first half net profit late on
Sunday, largely in line with expectations.
Wuliangye's results lifted larger sector rival,
Shanghai-listed Kweichow Moutai. It rose 2.3 percent
and was the top boost to both onshore Chinese benchmark indices.
Both stocks have outperformed this year although the sector
was hit after Moutai posted underwhelming first half earnings
this month. Moutai is up 23 percent this year, while Wuliangye
is up 8.5 percent, compared to a 1 percent loss for the CSI300
Index.
Belle International inched down 0.4 percent ahead
of its first-half earnings later in the day. It is up 9.9
percent this year and is currently trading at 19 times forward
12-month earnings, a 15 percent discount to its historical
median, according to Thomson Reuters StarMine.
Three out of 32 analysts have revised their full year
earnings-per-share estimates for the company by an average of
13.8 percent in the last 30 days, according to StarMine.
The Economic Information Daily newspaper reported China's
commerce and industry ministries, among others, may issue new
policies to bolster domestic consumption later this year.
CHINA ENERGY MAJORS COME UNDER EARNINGS FOCUS
Chinese oil giant CNOOC Ltd lost 0.6 percent ahead
of its first-half earnings. During the midday trading break,
China's top offshore oil producer posted a 19 percent fall in
first half net profit.
It is up 13.8 percent this year and is currently trading at
8.4 times forward 12-month earnings, a 20 percent discount to
its historical median, according to Thomson Reuters StarMine.
Ten out of 33 analysts downgraded their earnings-per-share
estimates for the company by an average of 6.1 percent in the
last 30 days, according to StarMine.
China Coal Energy Co Ltd, another company expected
to post earnings later in the day, shed 1.5 percent. It is now
down 14 percent this year.