Hong Kong shares climb to one-week high, but slide nearly 7 pct in Q2

HONG KONG, June 28 (Reuters) - Hong Kong shares snapped a six-week losing streak on Friday, their longest string of weekly losses in a year, as China's cash crunch eased and investors hunted for bargains after the market's recent heavy sell-off.

The Hang Seng Index closed up 1.8 percent at 20,803.29 points, while the China Enterprises Index of the top Chinese listings in Hong Kong rose 1.7 percent.

Both climbed to their highest closing levels in one week. But they lost 6.7 and 14.5 percent, respectively, for the quarter.

The Shanghai Composite Index ended a choppy session up 1.5 percent at 1,979.20 points, while the CSI300 of the leading Shanghai and Shenzhen A-share listings rose 1.9 percent. Both had their biggest daily percentage gain in two months.

HIGHLGHTS:

* Chinese property stocks jumped on mainland media reports about relaxation of financing for mainland property companies, although some analysts were doubtful that there will be any major changes in policy in the near term. By 0800 GMT, China Overseas Land and Investment Ltd was up 4.6 percent, while China Resources Land gained 3.2 percent.

* Shares of conglomerate China Resources Enterprise rose 3.6 percent after broker BOC International upgraded the stock to buy from hold and raised its price target to HK$25.90 from HK$23.50.