Hong Kong's benchmark Hang Seng Index was flat at 21,357.1while the China Enterprise Index slipped 0.1 percent.

 

The Shanghai Composite ended 0.4 percent lower at 2,686.0points by midday after trading flat for a large part of themorning session, stumbling at a key resistance level again asinsurers and financials fell.

 

Analysts said investors were warned off by the 2,700 mark, alevel the index has failed to breach several times in the lastmonth.

 

"The pressure today is from insurers like Ping An, whichgained considerably yesterday," said Chen Xingyu, analyst atPhillip Securities in Shanghai.

 

Ping An Insurance fell 1.7 percent, while China PacificInsurance Group fell 1.1 percent. Insurers outperformed on Mondayafter China said it would allow them to broaden investmentchannels into private equity and real estate.

 

Financials were mostly weaker with Everbright Bank, one ofthe most actively traded stocks on the Shanghai exchange, down1.1 percent.

 

Sustained rises in most steel companies prevented largerfalls in the broader index after media reports on Monday saidsome steel mills were ordered to shut down.

 

Manshan Iron and Steel rose 7 percent and Wuhan Steel gained0.8 percent, while Baoshan Iron & Steel, dropped 0.3 percent onprofit taking.

 

"The 2,700 mark is a tough one to break through in the nearterm," said Xu Yinhui, analyst at Guotai Junan Securities.

 

"Most investors are now waiting for economic figures forAugust to be released in the next week," Xu said.

 

HK STEADIES

 

Shares in Hong Kong were little changed by midday, hoveringnear a one month high, with turnover subdued as a U.S. marketholiday on Monday and the absence of major economic or earningsdata kept investors on the back foot.

 

"There's still optimism about global growth but we're seeingsome consolidation after the rise over the past few sessions,"said Steven Lam, vice president at Karl-Thomson Securities inHong Kong.

 

Resources stocks outperformed with iron and steel companiesleading gains after China's moves to consolidate the industry andimprove efficiencies.

 

"The government policy to close small plants and consolidatethe industry is good for larger players since it will temporarilyboost steel prices," said Lam, although he warned that somestocks had run up very quickly and could be poised for apullback.

 

Maanshan Iron, up 5.3 percent, had gained nearly 16 percentover the past two days, the biggest two-day rise in over 15months. Rival Angang Steel was up 4.2 percent.

 

Shares of Aluminum Corp of China were up 1.7 percent,building on Monday's gains, which came on the back of improvedoptimism over the global economy as a run of better-than-expecteddata tempered gloomy forecasts.

 

Market players will now focus on a flood of Chinese data asearly as this week that is expected to show continued moderationin economic growth in August, another bumper trade surplus and anincrease in inflation.

 

Source - http://www.foxbusiness.com