* China Vanke share sale weighs down China shares
* Esprit, CNOOC drop in Hong Kong after weak earnings
* Sino Gold surges on $1.8 billion Eldorado bid (Updates to close)
By Parvathy Ullatil & Claire Zhang
HONG KONG/SHANGHAI, Aug 27 (Reuters) - Hong Kong shares shed 1 percent in slim turnover on Thursday as disappointing earnings from blue chips including CNOOC and Esprit made investors wary ahead of a flurry of results in the coming days.
China's benchmark stock index fell 0.7 percent after a big share offer announced by the country's second-biggest listed property developer, China Vanke kept the focus on a hefty supply of new shares in the near future.
But China stocks outperformed most major markets in the region, where Japan's Nikkei average had shed 1.6 percent and Seoul's KOSPI dropped 0.9 percent, with technically driven buying helping to partially offset the impact of Vanke's share sale.
Esprit tanked 15 percent to a six-week low of HK$50.90 after the world's No.6 fashion retailer by market value posted a 40 percent fall in second-half profit as global economic woes took a bite out of its core European market as warned of a weak outlook.
Morgan Stanley cut its rating on the stock to "equal weight" from "overweight" as its expects to see further weakening in Esprit's business, particularly on the wholesale side, over the next six months.
EARNINGS DISAPPOINTMENT WEIGHS
The benchmark Hang Seng Index finished 213.57 points lower at 20,242.75 with shares worth HK$58.9 billion changing hands.
The China Enterprises Index, which represents top locally listed mainland Chinese stocks, was down 0.7 percent at 11,570.67.
"Weak results are mostly an excuse, there are no real surprises there. Futures traders are selling down the market ahead of the August futures expiry tomorrow," said Conita Hung, head of equity markets at Delta Asia Financial Group.
Property conglomerate Wharf Holdings was the best performer on the main index, rising 6.5 percent after its better-than-expected 44 percent increase in core earnings was met with brokerage upgrades.
Citigroup and Deutsche Bank raised their rating on the stock to "buy", citing solid growth in its China business and its relatively attractive valuation.
China's top offshore oil producer CNOOC fell 3 percent after it reported a 55 percent drop in first-half earnings, its lowest half-year profit since early 2005.
Oil fell towards $71 per barrel on Thursday, extending losses by more than $3 after touching a 10-month high this week, as rising crude and diesel stocks eclipsed healthy economic data.
Among outperformers, Sino Gold Mining Ltd surged 11.6 percent to HK$42.40 in Hong Kong after Canada's Eldorado Gold Corp launched a $1.8 billion bid for the company.
Its Australia-listed shares jumped 12.2 percent to A$6.70, with Eldorado's all-share bid equating to around A$7.24 per share, based on Tuesday close.
SHARE SUPPLY WORRIES HOUND
The Shanghai Composite Index finished down 21.2 points at 2,946.395, after rising 1.8 percent on Wednesday in a technical rebound.
Despite the index's fall, gaining Shanghai A shares outnumbered losers by 576 to 296 as investors turned their interest to small-cap shares. Turnover for Shanghai A shares rose to 145 billion yuan ($21 billion) from Wednesday's 143 billion yuan.
"As the market is still in a consolidation period, investors are testing the waters in various sectors, pushing the index up and down in intervals," said analyst Zhou Lin at Huatai Securities in Nanjing.
Analysts have said that, although the market is still under pressure from concerns over share supplies and other domestic factors, the index appears to be finding support around the five-day moving average, now at about 2,950 points.
China Vanke ended down 2.28 percent at 10.70 yuan after saying it planned a new public share offer to raise up to 11.2 billion yuan in net proceeds, a move analysts said could deal another blow to the vulnerable domestic stock market.
China's stock regulator also said late on Wednesday that it had approved an application by Metallurgical Corp of China (MCC) to launch an initial public offer in Shanghai aiming to raise around 16.85 billion yuan, in part to fund overseas projects.
Four small-cap shares will also list in Shenzhen on Friday.
Telecom shares outperformed, with China United Network Communications, the day's most active stock, jumping 4.75 percent to 6.61 yuan on speculation that a related company China Unicom would announce a deal to sell Apple's iPhone in China as soon as Friday.
The market is struggling to stabilise following a two-week, 20-percent slide earlier in the month.
"The rebound is not over yet. The index may head above 3,000," said analyst Zhang Yanbing at Zheshang Securities in Shanghai.
Oil refiners underperformed the market as domestic fuel prices remained unchanged despite surging global prices, disappointing market expectations that they would be raised.
Sinopec Corp slid 2.9 percent to 13.05 yuan, while PetroChina, the most heavily weighted stock in the index, sagged 2.71 percent to 14.00 yuan ahead of its first half earnings due on Friday. (Editing by Edmund Klamann and Chris Lewis)