HK shares close off highs on China slowdown fears

Mon Aug 11, 2008 4:09am EDT

HONG KONG, Aug 11 (Reuters) - Hong Kong stocks closed flat on Monday, giving up early gains after concerns over slowing economic growth and rising producer price inflation in China sent shares in most mainland manufacturers tumbling.

Shares in timepiece-maker Peace Mark Holdings plunged more than 70 percent at one point, as institutional investors dumped the stock on worries about the firm's high debt leverage and lack of clarity in its recent annual report.

China's largest offshore oil producer CNOOC slipped more than 3 percent, weighed down by a 20 percent slide in crude prices in the past month from record highs.

The Hang Seng Index .HSI unofficially closed down 1.75 points at 21,883.46.

The China Enterprises Index .HSCE of top locally listed Chinese firms dropped 0.7 percent, weighed down by a 5.2 percent slump on the Shanghai bourse.

(Reporting by Parvathy Ullatil; Editing by Jonathan Hopfner)