Hong Kong, China shares have modest rebound, contrasting PMIs temper gains
* HSI +0.5 pct, H-shares +0.1 pct, CSI300 +0.3 pct
* Macau gaming strong ahead of May revenue data
* Zijin Mining slides after manager surrenders to police
* CNBM weak after A-share IPO application reportedly withdrawn
By Clement Tan
HONG KONG, June 3 (Reuters) - Hong Kong and China shares started the month with a modest rebound on Monday, led by financial and property stocks, although contrasting surveys of May manufacturing activity in the world's second-largest economy tempered index gains.
China's official manufacturing purchasing managers' index (PMI) for May came in on Saturday at 50.8, higher than an expected 50.1, but the HSBC final PMI reading was 49.2, the lowest since October 2012 and lower than the flash 49.6 reading.
At midday, the Hang Seng Index was up 0.5 percent to 22,499.5. The China Enterprises Index of the top Chinese lsitings in Hong Kong was up 0.1 percent. The Shanghai Composite Index and the CSI300 of the leading Shanghai and Shenzhen A-share listings were each up 0.3 percent.
All four benchmarks had ended May on a weaker note on Friday but mainland indexes managed to outperform offshore peers on the month as small and mid-cap counters extended their outperformance on the year.
"The mixed data suggest recovery remains patchy, but the positive official manufacturing PMI reading could spur a short term rotation into the larger cap counters," said Cao Xuefeng, Huaxi Securities Chengdu-based head of research.
The CSI500 of small- and mid-cap counters listed in the mainland was flat, while Industrial and Commercial Bank of China (ICBC) climbed 1 percent to near a three-month high in Shanghai.
Still, in a sign that Chinese companies remain under pressure, China Foods tumbled 8.7 percent after reporting a net loss for the first four months this year, compared to a year ago. It also warned of a substantial decline in its first half profitability.
Applications to list on the mainland exchanges have dropped from more than 800 last November to 666, with state firms among the latest casualties of the securities regulatory's quest to overhaul initial public offerings in the mainland.
China National Building Material Co Ltd (CNBM) and Bank of Dalian were two state firms cited in mainland media reports to have withdrawn share applications. CNBM's Hong Kong listing shed 1.8 percent.
The Macau casino sector was strong ahead of May gambling revenue data. Sands China rose 0.9 percent. At midday, data showed revenue rose 13.5 percent in May from a year earlier.
Chinese property counters were lifted by a Monday report in the National Business Daily that the Beijing municipal government called off the auction for a residential plot because prices were too high.
China Vanke rose 0.8 percent in Shenzhen, Poly Real Estate gained 1.6 percent in Shanghai while China Resources Land spiked 2.5 percent after earlier testing a record high.
China Mengniu Diary jumped 3.7 percent after the country's State Council said Beijing will take measures to ensure baby milk product safety.
Zijin Mining sank 4.2 percent in Hong Kong and 0.3 percent in Shanghai after the general manager at one of its subsidiaries, allegedly involved in economic crimes, surrendered to police.
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