A survey on Monday showed the China services sector grew in November at its slowest in three months, after data last week that showed the factory sector shrank in November in the face of weakening demand at home and abroad. Beijing preceded the manufacturing data release last Thursday with its first cut in reserve requirements for commercial lenders in three years late on Wednesday, spurring Chinese shares listed in Hong Kong to their best day in nearly three years. "Many people were caught out by the sharp spike last Thursday and are trying to avoid that by positioning themselves gradually now in the higher quality, low valuation Chinese stocks," said Jackson Wong, vice-president of equity sales at Tanrich Securities. On Monday, the Hang Seng Index gained 0.4 percent to finish at 19,114.8 points at midday, with China Construction Bank (CCB) and China Shenhua Energy Co Ltd among its top boosts. CCB, which gained 0.9 percent, is currently trading at 6.4 times its forward 12-month earnings, a 48 percent discount from its 10-year median, according to Thomson Reuters StarMine data. Gains of almost 19 percent this quarter to date have lifted its valuation from all-time lows after it lost 25.7 percent in a third quarter sell-off on escalating fears of a hard landing in China. SHANGHAI EXTENDS UNDERPERFORMANCE Strength in financials helped limit losses on the Shanghai Composite Index as it closed down 0.6 percent at 2,345.8 points at midday, extending its underperformance compared to Asian peers. The latest economic data did little to assuage investors' skepticism about the economy with industrials and material stocks -- seen more sensitive to economic growth -- among the top drags. Anhui Conch Cement was 1.7 percent weaker. Sany Heavy Industries Co Ltd lost 2.3 percent to sink to its lowest in more than a year. But gains in beaten down financial stocks helped cap losses. Beijing's first cut in reserve requirements is perceived by segments of the market as intended to help commercial banks meet their annual lending quota. Financial stocks accounted for eight of the top 10 boosts to the Shanghai benchmark, with mid-sized China Merchants Bank and China Minsheng Bank each gaining over 1 percent.