UPDATE 1-China shares up 1.4 pct; banks, property rebound

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SHANGHAI, Dec 27 (Reuters) - China's main stock index climbed 1.44 percent to a fresh one-month high in expanding turnover on Thursday as financial and property shares rebounded, while telecommunications-related shares jumped.

The Shanghai Composite Index .SSEC ended at 5,308.889 points, near its intra-day high of 5,316.523, as gainers outnumbered losers by 588 to 270.

Turnover in Shanghai A shares shot up to a six-week high of 146.3 billion yuan ($20.0 billion) from Wednesday's 122.4 billion.

"Investors are focusing on the fact that after companies' strong performance in 2007, dividends for the year will be quite large," said Guo Yanling, senior analyst at Shanghai Securities. "So in the next month, some individual stocks will be active."

Technically, the strong turnover and the index's rise were positive because they appeared to confirm a clean break above the early December peak, triggering a minor double bottom formed by the November and December lows and pointing above 5,600 points in coming weeks. Some analysts see important resistance on the 60-day average, now at 5,373.

The biggest bank, Industrial & Commercial Bank of China (601398.SS)(1398.HK), gained 3.27 percent to 8.21 yuan. An industry source told Reuters on Wednesday that several top banks including ICBC had been given new lending quotas for next year that were the same as this year's targets -- restrictions that would not be as harsh as some analysts had feared.

Property shares rebounded after sagging for almost a month amid signs that the residential real estate market was flagging. Vanke (000002.SZ) shot up 5.66 percent to 29.31 yuan, though it remains down 15 percent from December's peak.

Traders said some institutional investors were seen going back into property stocks, partly because of accelerating appreciation of the yuan CNY=CFXS against the dollar, which boosts asset values.

The yuan was heading for its biggest daily post-revaluation rise on Thursday after a string of strong reference rates set by the central bank fuelled speculation that authorities might soon widen its trading band.

Merchants Property Development (000024.SZ), which had slid from an early November peak above 100 yuan, surged 8.42 percent to 59.20 yuan.

"Property shares finally seem to have found a floor, which should help the uptrend. The index could go as high as 5,400 points in coming days," said Zhang Yanbing, analyst at Zheshang Securities.

Most telecom-related shares jumped, led by China Unicom (600050.SS), up 8.28 percent to 12.29 yuan after hitting a record intra-day high of 12.49 yuan, and equipment maker ZTE Corp (000063.SZ), up 7.40 percent to 63.69 yuan.

The cabinet said late on Wednesday it had approved a plan to develop a new generation of broadband wireless mobile technology in China.

There were few details, and analysts said it was not clear whether this meant China would soon move ahead with full-scale introduction of 3G technology. But investors nevertheless saw the announcement as a positive signal for the sector.

Xinjiang Goldwind Science & Technology (002202.SZ), China's largest maker of wind power generating equipment, jumped its 10 percent daily limit to 144.10 yuan after soaring 264 percent in its debut on Wednesday.