REFILE-Properties fuel HK shares, Sinoma surges

(Refiles to fix day to Friday from Thursday)

(For Shanghai stock market reports, click [.SS])
(Adds Friday lunch close, details)

By Rita Chang

HONG KONG, Dec 21 (Reuters) - Hong Kong stocks rose broadly
on Friday as stabilising global equity markets lifted investor
confidence, with local property developers outperforming after
the city reported strong inflation data.

Hong Kong on Thursday said its consumer price index rose 3.4
percent to 9-year highs in November [ID:nHKG372043], which should
boost the already robust demand for flats as residents seek a
hedge against inflation in hard assets such as real estate.

Investors, meanwhile, brushed off China's interest rate rise
[ID:nPEK173091] on Thursday, which at 18 basis points was lower
than some had expected.

"The interest rate hike had some good news, because the
magnitude was below expectations," said Ernie Hon, strategist at
ICEA Securities.

"Some people were expecting a 50 basis points (rise)."

The benchmark Hang Seng Index .HSI had risen 1.6 percent to
27,458.02 by the midsession, on mainboard turnover of HK$43.1
billion (US$5.5 billion), in line with Thursday morning's HK$43
billion.

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, rose 1.1 percent to 15,898.08.

Among property shares, Cheung Kong (Holdings) (0001.HK)
gained 3 percent to HK$138.60 and Sun Hung Kai Properties
(0016.HK) raced up 3.1 percent to HK$158.4. The Hang Seng
property sub-index .HSNP rose 3.3 percent.

Sinopec Corp (0386.HK) leapt 1.8 percent to HK$11.52. The
country's No.2 oil and gas producer said it had found gas in
northeastern China with 26 billion cubic metres of recoverable
reserves [ID:nPEK201791].

China Railway (0390.HK), the morning's top traded stock,
jumped a further 5.3 percent to HK$9.43 as the world's
third-largest construction contractor was set to be added to the
MSCI Global Standard indices on Friday.

China National Materials Co Ltd (Sinoma) (1893.HK), the
world's largest cement engineering service provider, also shot up
in heavy trade, surging nearly 12 percent to HK$6.79, a day after
its strong debut.

CITIC International 0183.HK declined 2.5 percent to HK$4.61
after saying further write-downs may be required by CITIC Ka Wah
Bank as it was difficult to determine fair value for its
structured investment vehicles assets.
(US$1=HK$7.8)
(Editing by Anne Marie Roantree)