HK shares end at 6-week high; China up on property

* HK shares climb, CCB at 6-week high

* Li & Fung at record close on U.S. recovery hopes

* China up on property as worries over price curbs ease (Updates to close)

By Donny Kwok and Claire Zhang

HONG KONG, March 8 (Reuters) - Hong Kong shares climbed on Monday to a six-week closing high with China Construction Bank (0939.HK) leading gains, while mainland stocks rose helped by property shares as worries over measures to curb prices eased.

China Construction Bank (0939.HK) (CCB), extending a 2.3 percent gain in the previous session, rose another 2.5 percent to a six-week high of HK$6.25. It ended at HK$6.21, up 1.8 percent. China's second-largest lender said it expected its new lending to grow more than 10 percent this year. [ID:nBJB003719]

Top lender ICBC (1398.HK) climbed 2.24 percent to close at a six-week high of HK$5.93, extending its 0.87 percent gain from the previous session. The world's biggest bank by market capitalisation said its deposits at the end of 2009 totalled 10.2 trillion yuan ($1.5 trillion). [ID:nTOE62600C]

Exporter Li & Fung (0494.HK), which soared 4.2 percent in the previous session, jumped 4.2 percent to a record close at HK$40.90, boosted by hopes of a recovery in the U.S. economy after encouraging retail sales data and lower-than-expected job losses in the United States.

Brokers said demand for Li & Fung was strong as the market offered few alternatives in the same segment and on expectations the United States was on course for recovery.

"It was a data driven market," said Alex Wong, a director at Ample Finance Group. "Investors didn't seem to worry about possible tightening (credit) markets but they covered their short positions when there was no bearish catalyst."

The benchmark Hang Seng Index .HSI ended up 408.90 points at 21,196.87, its highest close in six weeks. The China Enterprises Index .HSCE of top locally listed mainland Chinese stocks ended up 2.31 percent, its biggest single-day of gains in a week, at a six-week closing high of 12,202.80.

Turnover decreased to HK$64.33 billion ($8.3 billion) from Thursday's HK$69.2 billion.

"A (relatively) low turnover suggested investors' confidence (in the market) has not fully returned yet," said Daniel Chan, strategist at DBS Bank.

HSBC (0005.HK) was up 1.5 percent to end at HK$83.05, its highest close in a week, Standard Chartered (2888.HK) was up 3.5 percent at a more than three-month closing high of HK$206.60.

China Life Insurance Co (2628.HK) rose 2.5 percent to close at HK$35.20 after the world's biggest life insurer by market value said it was looking to acquire a bank, following its peers as China relaxes restrictions on banks and insurance companies investing in each other. [ID:nTOE62405E]

PetroChina (0857.HK) rose 2.8 percent to a six-week closing high at HK$9.18. Its chairman said the company's joint bid for Australia's Arrow Energy AOE.AX with Royal Dutch Shell (RDSa.L) was in an initial stage and had no timetable. [ID:nHKV002277]

Lagging behind the market, China Unicom (0762.HK) fell 1.03 percent after China's No. 2 mobile carrier said its total investments will fall this year as it scales back spending on broadband and focuses on new 3G wireless network. [ID:nTOE62502F]

SHANGHAI RISES AS PROPERTY SHARES UP

China's key stock index closed up 0.73 percent in shrinking turnover on Monday, with property shares higher after officials' comments suggesting caution on policy eased worries about measures to curb prices.

The Shanghai Composite Index .SSEC ended the session at 3,053.232 points, after slipping 0.7 percent last week.

Central bank governor Zhou Xiaochuan said over the weekend that the timing of China's exit from economic stimulus would require prudence. [ID:nSGE62700U]

Analysts said investors were also waiting for economic data for February, including closely watched inflation numbers, expected to be released in the middle of the week.

"Investors are being cautious ahead of the CPI figures," said Xu Yinhui, analyst at Guotai Junan Securities in Shanghai.

"After the numbers we will get confirmation of the policy direction and, for example, will see if the central bank will raise interest rates," Xu said. He added that expectations centred around a rise of about 2.3 percent in the CPI.

Gaining Shanghai stocks outnumbered losers by 727 to 150, while turnover fell to a two-week low of 92 billion yuan ($13.48 billion) from Thursday's 144 billion yuan.

Property stocks rose with the Shanghai property index .SSEP up 1.83 percent, while Lujiazui Finance (600663.SS) rose 7.11 percent to 24.41 yuan after consolidating around 22 to 23 yuan for more than a month.

"The property sector rebounded after consolidating as there seems to be a lack of further negative policies toward the sector at the moment," said Wen Lijun, analyst at Nanjing Securities. "The index is still likely to be range-bound in the short term."

The housing ministry said on Monday that the Chinese government had succeeded in curbing property speculation in some cities where real estate prices were rising too fast. [ID:nBJC002510]

Coal shares were firmer, with China Shenhua Energy (601088.SS) gaining 1.33 percent to 28.89 yuan after the price of crude oil extended its gains toward $82 a barrel on Monday, buoyed by a weaker dollar.