* Mixed signals from Chinese economic data
* Interest rate worries weigh down HK property stocks
* IPO restart fears hound mainland markets
(Updates to close)
By Parvathy Ullatil & Claire Zhang
HONG KONG/SHANGHAI, June 11 (Reuters) - Hong Kong shares shuffled sideways in a skittish session on Thursday, taking a breather after the previous session's sharp ascent, as local property stocks were beaten down on worries about rising interest rates.
China-listed stocks slipped, snapping a three-day rise as the market grew cautious ahead of the looming restart of initial public offerings, while May economic data gave a mixed picture of recovery.
Economic data for May was mixed, with robust investment spending bolstering hopes for recovery, although imports and exports were weak.
"This (fixed-asset investment growth), together with robust private consumption, will continue to support stronger domestic demand growth, which will be more than sufficient to offset the weakness in exports," said Yu Song and Helen Qiao, analysts with Goldman Sachs, in a note to investors on Thursday.
PROPERTY STOCKS HIT IN HONG KONG
The benchmark Hang Seng Index finished 5.37 points higher at 18,791.03, after dropping to 18,564.87 earlier.
The China Enterprises Index of top mainland companies was up 0.4 percent at 11,080.84, led by a 2.4 percent jump in China Construction Bank, which has been a laggard in the recent rally.
Turnover shrank to HK$78.4 billion ($10.1 billion) from HK$83.5 billion on Wednesday.
Local property stocks were beaten down on worries about rising interest rates, which hit Wall Street shares on Wednesday.
"Even though a rate hike in the U.S. may be two or even three quarters away, its all about investor expectations, and investors don't like the rising bond yields," said Alex Wong, a director with Ample Finance Group.
Changes in interest rates in Hong Kong take place in tandem with those in the United States owing to the peg between the local currency and the greenback.
Top developer Sun Hung Kai Properties was down 1.9 percent, while Li Ka-shing's property flagship Cheung Kong dropped 2.7 percent to HK$91.45. Sino Land slipped 2.5 percent, while Hang Lung Properties gave up 4.8 percent.
Bank stocks were also hit with HSBC's local unit, Hang Seng Bank shrinking 2 percent to HK$113.80
Sinopec Shanghai Petrochemical jumped 7.3 percent to HK$2.80 after the refiner said it expected to return to profit in the first half of 2009 as raw materials prices dropped following a fall in international crude oil prices.
China's top juice maker China Huiyuan Juice Group climbed 1.8 percent after its controlling shareholder confirmed he had no intention of cutting his stake in the company following the exit of a key investor.
Earlier this month, U.S. private equity fund Warburg Pincus indicated it would redeem convertible bonds it held in the juice maker, sending the stock plunging.
IPO RESTART WORRIES WEIGH
The Shanghai Composite Index ended down 18.927 points or 0.67 percent at 2,797.320 points, after hitting a 10-month intraday high. The index has hit fresh 10-month intraday highs in seven of the last nine sessions.
"There's a mix of positive and negative news today, but it was as expected. The index consolidated after hitting a new high (for the year)," said Huatai Securities analyst Li Wenhui.
Although the index was still in an uptrend, he said investors remained wary about the looming resumption of IPOs, which could drain money from existing stocks in the short term and weigh on sentiment.
Losing Shanghai A shares outnumbered gainers by 568 to 353, while turnover in Shanghai A shares dropped to 132.2 billion yuan ($19.4 billion), the lowest so far this month, from Wednesday's 143.8 billion yuan.
Analysts said shrinking turnover suggested investors had grown cautious about the outlook for index, which has steadily climbed to new highs in June without a substantial correction. They expect it will consolidate around 2,800 points.
China's securities regulator issued new rules late on Wednesday to reform initial public equity offers, paving the way for a resumption at any time of IPOs that have become backlogged since a halt last September.
Bank shares outperformed, with Industrial and Commercial Bank of China, the country's biggest lender, gaining 1.7 percent to 4.79 yuan. Analysts noted rumours that China may cut interest rates on deposits after consumer prices posted a fourth month in a row of deflation in May, while valuations are also considered low.
"Although banks lent support to the index, upward momentum is waning," said Xiangcai Securities analyst Li Shiming.
Steel shares were weak, with Angang Steel sagging 4 percent to 12.00 yuan, while Baosteel, China's top steelmaker, slipped 1.3 percent to 6.82 yuan.
The official China Securities Journal cited a senior executive at China's steel industry group as saying China was ready for a breakdown in iron ore terms talks with major global miners and was prepared to cut steel output if ore supplies were curbed as a result.
(Editing by Edmund Klamann and Chris Lewis)