China shares gain 3.8 pct after holiday; HK up 0.17 pct

* Shanghai market advances after eight-day holiday

* Wynn Macau posts gains on debut
(Updates to midday)

HONG KONG/SHANGHAI, Oct 9 (Reuters) - China's key stock index
.SSCE was up 3.84 percent on Friday, led by banking shares, as
the market played catch-up following a strong global rally during
Chibna's eight-day National Day holiday.

In Hong Kong, shares rose 0.17 percent, below gains in recent
sessions, as some investors took profit.

The Shanghai Composite Index .SSEC rose to 2,886.204
points, with all 893 stocks posting gains.

PetroChina (601857.SS), the index's most heavily weighted
stock, rose 2.68 percent to 13.04 yuan after large-cap shares
underperformed the market in the run-up to the holiday break.

Top lender Industrial and Commercial Bank of China
(601398.SS) was up 1.89 percent at 4.86 yuan, while the biggest
housing mortgage lender, Construction Bank of China (601939.SS),
added 2.69 percent to 5.73 yuan.

Overall trading activity staged a measured recovery from
sluggish volumes seen before the holiday. Turnover of Shanghai A
shares rose to 51 billion yuan ($7.5 billion) on Friday morning
from 37 billion yuan on the morning of Sept. 30.

China's markets were closed from Oct. 1 to Oct. 8.

The Shanghai market is expected to be supported by fresh
signs of economic recovery in China when the government announces
key September economic data next week, but it remains under
pressure from large supplies of new shares, among other negative
factors.

"I don't expect the market to enter a bull run amid a heavy
new supplies of shares and a slowdown in the growth of new bank
loans," said senior stock analyst Ren Chengde at Galaxy
Securities in Shanghai.

Friday's rally allowed the benchmark index to recapture its
125-day, or half-year, moving average, now at 2,869 points, but
analysts said investor sentiment still needed time to recover.

The index lost 6 percent in the third quarter, marking its
worst quarterly performance this year as sentiment was depressed
by supplies of new shares including initial public offerings on
China's planned Nasdaq-style second board, ChiNext.

State media said on Friday that a third batch of companies to
be listed on ChiNext had received regulatory approval and aimed
to raise a combined total of about 2.15 billion yuan ($315
million).

The offerings will be priced on Oct. 13 and take
subscriptions on Oct. 15.

HONG KONG'S RISE SLOWS

Shares in Hong Kong rose at slower pace on Friday, after
gaining 5.5 percent in the last four sessions, as some investors
took profit on stocks that posted sharp gains, including HSBC
(0005.HK) and Chinese gold miners.

"The market has already rebounded more than 1,000 points in a
very short period of time, so there is bound to be some
profit-taking pressure," said Ben Kwong, chief operating officer
at KGI Asia.
Debutant Wynn Macau (1128.HK), the Asia unit of U.S. casino
giant Wynn Resorts (WYNN.O), rose 8.5 percent, signalling that
appetite for gambling stocks remained strong. [ID:nHKG18196]

Sharp gains on shares that debuted in Hong Kong on Thursday,
including infant formula maker Ausnutria Dairy Corp (1717.HK),
also helped Wynn Macau's rise. Ausnutria closed up 27.5 percent
in the previous session.

The benchmark Hang Seng Index .HSI rose 35.79 points to
21,528.69 at the midday break. Turnover was HK$33.9 billion ($4.4
billion, up from HK$31.1 billion on Thursday.

COSCO Pacific (1199.HK) rose 1.57 percent. The port operator
forecast container throughput in China's ports to rise 5 to 10
percent in 2010, the South China Morning Post said on Friday.

HSBC (0005.HK) fell 0.5 percent, reversing Thursday's 1.83
percent gain.

Hunan Nonferrous Metals Corp Ltd (2626.HK) slid 1.32 percent.
The company is investigating an incident in which two falling
mine cages killed 26 people and injured five at one of the
company's mines on Oct. 8.

China Shipping Development (1138.HK) extended gains on higher
freight costs, rising 2.92 percent.

China's goldminers slipped as gold eased from record highs.
Realgold Mining (0246.HK) fell 1.65 percent, while Lingbao Gold
(3330.HK) dropped 1.28 percent.

The China Enterprises Index of top locally listed mainland
Chinese companies was up 0.67 percent at 12,539.28, led by a 3.32
percent gain in cement maker Anhui Conch (0914.HK).
(Editing by Chris Lewis)