* Hong Kong falls 0.36 pct; Shanghai rises 0.5 pct
* HK developers slump after government tightening measures
* Chinese banks lower after reserve requirement raised (Updates to midday)
By Donny Kwok and Farah Master
HONG KONG/SHANGHAI, Nov 22 (Reuters) - Hong Kong shares retreated on Monday morning, led by property issues after government measures to cool the property market, while China stocks edged higher as insurers and technology plays gained ground.
The benchmark Hang Seng Index was down 0.36 percent at 23,521.09 by the midday trading break. The China Enterprises Index of top locally listed mainland companies had eased 0.17 percent.
Local developers slumped after the government announced fresh measures including a new stamp duty on residential transactions to cool fast-rising property prices.
But a weak U.S. dollar and higher commodity prices buoyed resources counters, limiting losses in the broad market.
"We have two opposing forces in the market," said Ben Kwong, chief operating officer at KGI Asia Ltd. "On one hand, you have monetary tightening in China and anti-speculative measures in Hong Kong that's pulling down banks and properties. But it seems the weakness in the dollar is limiting the downside because it is favourable for commodities."
Property agency Midland Holdings Co Ltd slumped 15.5 percent on expectations revenue will fall after the cooling measures.
Developers were also lower, with the market's property sub-index down 2.63 percent at a two-month low, and Sino Land Co Ltd down 5.5 percent.
Turnover in shares of property developers remained stable, indicating that investors remained upbeat on their earnings potential despite government efforts to cool the sector.
"The (index) fall was not as deep as we expected," said Conita Hung, head of equity research of Delta Asia Financial, adding that investors were switching to consumer-related stocks, which were less affected by the latest measures.
Exporter Li & Fung Ltd rose 1.6 percent and Esprit Holdings Ltd rose 1.4 percent on optimism the bailout for Ireland will sustain global economic recovery. Footwear retailer Belle International Holdings Ltd rose 2.5 percent.
Bank of China Ltd slid 2.3 percent after Beijing raised bank reserve requirements again on Friday in an effort to ease inflation.
China Petroleum and Chemical Corp (Sinopec) rose 2.1 percent and China Shenhua Energy Co Ltd was up 0.9 percent.
CHINA LIFTED BY INSURERS, TECH ISSUES
China's key stock index had edged up 0.5 percent by midday on Monday, with gains in insurers and information technology plays offsetting weakness in banking counters.
Late on Friday, the central bank raised bank reserve requirement ratios for the second time in two weeks, aiming to reduce the amount of cash in the financial system as part of its fight against inflation.
Analysts said there was not enough positive news for the index to rise much above the 250-day moving average, now at 2,887.6 points, but a mild technical bounce could take place as investors had been pricing in more severe tightening measures.
The Shanghai Composite Index was at 2,902.3 points at midday after falling 3.2 percent last week.
"The market is under pressure, with inflation rising much faster than anticipated," said Wang Aochao, analyst at UOB Kay Hian in Shanghai.
Wang, previously very bullish on the Shanghai market, said he had changed his outlook, with rising inflation, and additional pressure from slowing global demand and an appreciating yuan giving investors reason to be nervous.
Banks curbed overall gains, with Bank of China Ltd, the biggest drag on the index, down 1.2 percent. China Merchants Bank Co Ltd fell 1.3 percent, while Shanghai Pudong Development Bank Co Ltd slipped 1.2 percent.
Ping An Insurance (Group) Co of China Ltd jumped 2.9 percent, while China Pacific Insurance (Group) Co Ltd rose 1 percent as insurers shifted funds from bank shares to insurers, seen likely to fare better in an environment where interest rates are rising.
Analysts said capital flows into the market were set to continue, so investors would selectively position themselves in sectors such as new energy and information technology, seen likely to benefit from the government's new five-year economic development plan.
Guangdong Shengyi Sci Tech Co Ltd and computer hardware company Founder Technology Group Corp were among small-cap tech issues that jumped by their 10 percent limit, as retail investors rushed into what they view as the latest sector likely to gain from government support.
Volume rose but remained below highs seen in October's liquidity-fuelled rally. Turnover of Shanghai A shares edged up to 87 billion yuan on Monday from 78 billion on Friday morning.
Shanghai shares have had a rollercoaster year so far, dropping nearly 30 percent by early July after a clampdown in bank lending and official measures to curtail the country's real estate fever. (Additional reporting by Jun Ebias; Editing by Chris Lewis)