Turnover on the Hong Kong bourse remained lacklustre amid economic uncertainty. Euro zone nations are expected to vote on Friday on an agreement hashed out between Germany and France to tighten fiscal controls for member nations. The lingering sovereign debt crisis in Europe has become a stumbling block for investors hoping to put fresh money to work in anticipation of a better year for Chinese shares that are trading at the low-end of historic valuations. "Chinese financial names are looking very attractive now given their valuations, but funds that like them are likely to have already bought into them," said Peter So, a strategist with CCB International Securities. On Thursday, the Hang Seng Index closed down 0.7 percent at 19,111.64 points at midday, slipping from a three-week high. HSBC Holdings Plc, Europe's largest bank, was the top drag on the benchmark Hang Seng Index, losing 1.1 percent followed by China Mobile which fell 0.8 percent. Shares of Li & Fung Ltd, manager of supply chains for retailers including Wal-Mart Stores Inc and Target Corp, slumped 3.8 percent after IFR reported Singapore state investor Temasek Holdings aims to raise up to S$600 million ($468 million) from the sale of zero coupon bonds exchangeable into shares. SHANGHAI BOUNCES FROM YEAR-LOW The Shanghai Composite Index rose 0.4 percent to 2,342.42, bouncing from a year-low and prompting some traders to speculate about whether the index is forming a base from which to begin a more sustainable rally. The index is down nearly 34 percent from its cycle-high of 3,478.01 hit last November and is one of Asia's worst performers over the period as monetary tightening, rising inflation and worries about the banking sector spooked investors. Retail investors, who dominate trading on mainland markets, have remained wary, pushing turnover on the Shanghai exchange to the lowest levels this year. China Life Insurance, the country's biggest insurer, was the top drag on the Shanghai benchmark, down 2.2 percent. It has lost more than 4 percent since hitting a 5-month high on Dec 1, when a cut in reserve requirements for commercial banks in China sparked a rally in financial shares. Ahead of November premiums data expected next week, ratings agency Fitch said on Wednesday that Chinese life insurers' profitability remains under pressure, due to likely lacklustre investment performance amid a gloomy economic outlook.