China blue chips rebound from near 5-month low; Hong Kong muted
* SSEC +0.8 pct; CSI300 +1.1 pct; HSI 0.3 pct
* CSI300 rebounds from near five-month low close on Thurs
* Light trading volume after Christmas
* China, HK shares seen trading water through year end
By Gabriel Wildau and Chen Yixin
SHANGHAI, Dec 27 (Reuters) - Chinese mainland shares rose on Friday, boosting the Hong Kong market along with it, as low valuations attracted investors after a key mainland index slid to a near five-month low on Thursday.
The CSI300 index of the largest mainland shares was 1.1 percent higher at midday after closing at its lowest level since Aug. 1 on Thursday. The Shanghai Composite Index rose 0.8 percent.
Analysts said they expected the index had little room to rise sharply in the near term unless trading volume increases.
"This is an oscillating trend typical during year-end. I think the index is in the process of looking for a real bottom," said Yao Kai, chief analyst at Aerospace Securities.
"Turnover is light recently, which means money inflows are not enough (to support the market). I think after a sharp rebound in the volume, a decent rebound will appear."
HONG KONG MUTED
After closing for two days for Christmas, Hong Kong shares were up modestly, with the Hang Seng Index tacking on just 0.3 percent and the China Enterprise Index of top mainland companies nearly flat at midday.
"The mainland stock market has rebounded, transmitting positive sentiment to the (Hong Kong) market. But some of the mainland bank shares are still under pressure, so the Hang Seng Index is only up moderately," said Patrick Yiu, a director at Cash Asset Management in Hong Kong.
China Construction Bank was the biggest drag on the Hong Kong index, losing 0.7 percent by midday, while Bank of China lost 0.3 percent.
Internet giant Tencent led the index, rising 2.1 percent through midday, amid broader strength in tech stocks. An index of Shanghai-listed information technology stocks rose 1.7 percent.
Trading in Hong Kong was light at only 5.6 billion Hong Kong dollars at midday, less than half of the 2013 low set on Dec. 24.
"The market will continue to be quiet because index futures have been swapped from December to January. Some investors would like to take a holiday."
China's statistics bureau on Friday said that industrial profits rose 13.2 percent year-on-year in the year to November, 0.5 percentage points slower than the January to October pace.
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