HK shares end 3-day rally; China stocks gain for 4th day

* China shares at 12-month high led by coal, property

* Shanghai Composite Index seen headed above 3,000 points

* HK shares slip 0.4 pct; turnover drops to three-month low (Updates to close)

By Parvathy Ullatil & Claire Zhang

HONG KONG/SHANGHAI, June 29 (Reuters) - Chinese stocks rose 1.61 percent on Monday, hitting a fresh one-year closing high for a fourth session in a row, with coal and property counters strong as signs of economic recovery and ample liquidity boosted the market.

In Hong Kong, shares dropped 0.39 percent on Monday, deflating a three-session rally as lower energy prices weighed on resources-linked counters, while turnover dropped to a three-month low as investors took to the sidelines ahead of the expiration of index futures.

"The market has entered a choppy phase after four straight months of gains. It will continue to consolidate around this level as investors seek evidence of an economic recovery that hs already been factored into the rally," said Linus Yip, strategist with First Shanghai Securities.

TURNOVER DRIES UP IN HONG KONG

The benchmark Hang Seng Index .HSI finished down 71.75 points at 18,528.51 after slipping in and out of positive territory.

Turnover slowed to HK$50 billion, the lowest since the end of March, from Friday's HK$62.5 billion ahead of the expiration of index futures on Monday and a heavy calendar of key economic data this week.

The June contract expired at 18,570 points, while the July contract moved up 36 points to 18,574 by the end of the day's trade.

Data out this week, including China's Purchasing Managers Index on Wednesday, U.S. Consumer confidence on Tuesday, and U.S. jobs report and manufacturing data on Thursday, could be make-or-break factors in determining whether the recent rally has any legs.

"Money is still pouring into Hong Kong, the monetary authority has been intervening repeatedly to hold up the peg. But a lot of that is bypassing the secondary market and heading for the IPO market," said First Shanghai's Yip.

The China Enterprises Index .HSCE, which represents top locally listed mainland Chinese stocks, closed down 0.45 percent at 10,987.57.

Bucking the trend, CITIC Pacific (0267.HK) jumped 6.7 percent to HK$16.28 after Goldman Sachs added the company to its conviction buy list, arguing that the steel-to-property conglomerate's valuation looked attractive compared with Chinese peers.

The investment bank also projected CITIC's special steel manufacturing business would benefit from China's strong vehicle production and sales growth. Goldman Sachs raised its target price on the stock to HK$19.40 from HK$16.90.