HK, China shares rise as carmakers soar on upbeat sales data

* Carmakers surge on upbeat June sales figures

* Refiners, airlines climb on falling oil prices

* China Merchants extends losses on rights issue plan (Updates to close)

By Parvathy Ullatil and Claire Zhang

HONG KONG, July 9 (Reuters) - Hong Kong and Chinese shares recovered early losses on Thursday, driven by gains among carmakers including Dongfeng Group (0489.HK) after China announced upbeat June sales.

China's passenger car sales in June rose 48.5 percent from a year earlier as government stimulus measures boosted consumption, Xinhua said on Thursday. [ID:nSHA165501]

A total of 874,000 cars were sold last month, according to Reuters calculations, up from 588,400 a year earlier, and above 829,100 units in May.

Dongfeng Group soared 9 percent, while Geely Automobile Holdings (0175.HK) jumped 11 percent. In China, FAW Car (000800.SZ), FAW Xiali Automobile (000927.SZ) and SAIC Motor (600104.SS) each advanced by around 9 percent.

Investors shrugged off concerns that surprisingly high mainland new lending data for June could lead to a clampdown on China's monetary easing policies. Most analysts said they did not expect an imminent policy shift.

"After such robust lending in the first half of 2009, taking steps to restrain lending makes sense, but it's unlikely both monetary and property policies will shift direction suddenly," said Huatai Securities analyst Chen Huiqin.

REFINERS, AIRLINES SOAR

The benchmark Hang Seng Index .HSI rose 0.39 percent or 69.52 points to 17,790.59, rebounding from a two-week low.

Turnover rose to HK$62.3 billion from Wednesday's HK$57.1 billion.

Energy-related stocks including refiners and airlines climbed on the back of a dip in oil prices. Air China (0753.HK) (601111.SS) jumped 2.1 percent in Hong Kong and 5.4 percent in Shanghai, while top Asian refiner Sinopec Corp. (0386.HK) rose 3.9 percent.

China Merchants Bank (3968.HK) (600036.SS) extended Wednesday's losses as investors fretted over its plans to raise about $3 billion through a rights offering by the end of the year as China's sixth-largest lender aims to boost its capital after overpaying for a recent acquisition.

The stock fell 3.1 percent in Hong Kong, deepening Wednesday's 3.7 percent drop, and shed 0.1 per cent in Shanghai. Earlier this year, China Merchants said it would book a provision against its $4.7 billion acquisition of Hong Kong's Wing Lung Bank in 2008. [ID:nPEK350559].

The China Enterprises Index .HSCE, which represents top locally listed mainland Chinese stocks, rose 0.64 percent to 10,641.19.

Property stocks continued to correct, with China Overseas Land (0688.HK) down 4.1 percent. Guangzhou R&F (2777.HK) gave up 2.8 percent, while Shimao Property (0813.HK) dropped 2.6 percent.

Chinese banks extended new loans totalling 1.53 trillion yuan ($223.9 billion) in June, much higher than a state media estimate of 1.2 trillion yuan.

"Loan data drove the market higher in recent months, but with the June data it is beginning to look like they have gone too far. There is concern the government will step in to control lending," said Francis Lun, general manager with Fulbright Securities.

Senior regulators have in recent days warned of the risk posed to the banking sector from massive infrastructure lending this year, while earlier this week, banks in Hangzhou were reported to have tightened down-payment requirements on second mortgages to curb the surge in home prices.

Steel plays gained, with Baoshan Steel (600019.SS) advancing 1.9 percent, with news of the detention of four Rio Tinto executives fuelling uncertainty about iron ore price talks.

Chinese authorities detained four Rio Tinto (RIO.AX) (RIO.L) employees on suspicion of stealing state secrets, after tense negotiations over the price of iron ore dragged past their June 30 deadline. [ID:nSP473911]

Green Global Resources (0061.HK) climbed 9.8 percent after saying it would buy a stake in a resources company that holds an exploration licence for an iron mine in Dundgobi, southwest of the Mongolian capital Ulaan Baatar, for HK$1.76 billion. (Reporting by Parvathy Ullatil and Sui-Lee Wee in HONG KONG and Claire Zhang in SHANGHAI; Editing by Chris Lewis)