HK, China share up; gold miners, China banks rise

* HK stocks track mainland markets to close higher

* China banks, gold miners up as gold price surges
(Updates to close)

By Claire Zhang and Donny Kwok

HONG KONG/SHANGHAI, Sept 8 (Reuters) - China's benchmark
stock index closed up 1.7 percent for the sixth straight day on
Tuesday, led by gold miners' shares, amid continued signs of
government policy support for equity trading.

Hong Kong stocks followed suit and closed up 2.14 percent for
the fourth straight day, with China banks leading rises on hopes
of support from Beijing and that the Chinese government was not
likely to take drastic steps to stifle the stock market's rally.

The benchmark Hang Seng Index .HSI finished 440.5 points
higher at 21,069.81, its highest close since mid-August. The
China Enterprises Index .HSCE, which represents top locally
listed mainland Chinese stocks, was up 2.48 percent at 12,275.66.

"More buying interest was noted in the local market as
China's market continued to rise," said Patrick Yiu, a director
at CASH Asset Management. "Demand for laggards gave Chinese banks
firm support as their valuations are below the index average."

ICBC (1398.HK), the country's largest lender, gained 1.9
percent; China Construction Bank (0939.HK), China's No.2 lender,
jumped 2.4 percent, while Bank of China (3988.HK) rose 2.2
percent. China Life (2628.HK) also climbed 2.3 percent.

Brokers said the local market remained volatile as
speculative interest dominated trading.

Zhongjin Gold (600489.SS) climbed 5.7 percent to 59.99 yuan
after U.S. gold futures hit $1,000 an ounce for the first time
since February as the dollar's weakness, concerns about the
sustainability of the global economic recovery and worries about
future inflation underpinned sentiment. [ID:nT92445]

Zhaojin Mining (1818.HK) surged more than 13 percent to a
4-month high at HK$14.40 before the stock ended at HK$14.28.

Mengniu Dairy (2319.HK) rose almost 6 percent after it posted
a 13.6 percent rise in Jan-June profit and its turnover showed a
gradual recovery to the level before a milk incident last year.

CHINA MARKET EXTENDS GAIN

Investor sentiment also got a shot in the arm from signs that
China's August economic data, due mostly to be released later
this week, would show that the country's improving exports among
other sectors was underpinning a recovery. [ID:nPEK51312]

The Shanghai Composite Index .SSEC closed at 2,930.475
points, having gained more than 10 percent since it hit this
year's intraday low on Sept. 1, with policy support offsetting
profit-taking pressure and heavy supplies of new shares, and as
the stock regulator was pushing more securities mutual funds into
the market.

Gaining Shanghai A shares overwhelmed losers by 758 to 105,
while turnover rose slightly to a relatively decent 148 billion
yuan ($22 billion) from 146 billion on Monday.

The official China Securities Journal reported that nine
securities mutual funds, tracking China's stock indices, are
being launched in September, pumping 50 billion yuan ($7.3
billion) into the market.

In line with other official comments in recent weeks, which
propped up the market, central bank Vice Governor Su Ning said on
Tuesday that China had not indicated it was planning to shift
monetary policy -- one of the key concerns that caused the market
to plunge 22 percent in August.

"We never said we will adjust monetary policy," Su told
reporters during a visit to Taiwan when asked if there was room
to move interest rates. [ID:nT32484]

Regulators appear to have taken steps to bolster the market
since early this month ahead of the Oct. 1 National Day which
marks the 60th anniversary of the founding of the People's
Republic of China, seen as one of the country's major political
events when Beijing typically tries to keep the market stable.

Stocks in sectors such as tourism, fireworks, military
product makers and retailers, whose performance is believed
linked to the country's founding anniversary, outperformed.

Panda Fireworks Group (600599.SS), Beijing Jingxi Tourism
Development 000802.SZ, China North Optical-Electrical
Technology (600435.SS) all jumped their 10 percent daily limits,
while Beijing Xidan Department Store (600723.SS) advanced 4.56
percent to 9.41 yuan.

Chen Shaodan, senior analyst at Stockfly Securities in
Beijing said positive policy and upbeat economic data could lift
sentiment further in the near term.

"Investors are actively trading shares in hot sectors,
indicating the index may have the potential to rise further," she
said, adding, however, that the psychologically important
3,000-point level might still prove a stiff resistance.

Auto shares were also strong on Tuesday, with SAIC Motor
(600104.SS) climbing 5.61 percent to 20.15 yuan and Changan Auto
(000625.SZ) rising 3.67 percent to 11.03 yuan.

The stocks were buoyed by a Xinhua news agency report late on
Monday that China's vehicle sales exceeded 1 million units in
August for the sixth straight month, helped by Beijing's policy
initiatives. [ID:nSHA369872]

On the negative news front, Metallurgical Corp of China
(MCC), which is launching a $5.3 billion dual initial public
offering (IPOs) in Shanghai and Hong Kong, is taking
subscriptions in Shanghai on Tuesday and Wednesday, draining
funds from existing shares. [ID:nSHA37833]
(Editing by Jacqueline Wong)