* SSEC +0.8 pct; CSI300 +1.1 pct; HSI 0.3 pct
* CSI300 rebounds from near five-month low close on Thurs
* Light trading volume after Christmas
* China, HK shares seen trading water through year end
By Gabriel Wildau and Chen Yixin
SHANGHAI, Dec 27 Chinese mainland shares rose on
Friday, boosting the Hong Kong market along with it, as low
valuations attracted investors after a key mainland index slid
to a near five-month low on Thursday.
The CSI300 index of the largest mainland shares
was 1.1 percent higher at midday after closing at its lowest
level since Aug. 1 on Thursday. The Shanghai Composite Index
rose 0.8 percent.
Analysts said they expected the index had little room to
rise sharply in the near term unless trading volume increases.
"This is an oscillating trend typical during year-end. I
think the index is in the process of looking for a real bottom,"
said Yao Kai, chief analyst at Aerospace Securities.
"Turnover is light recently, which means money inflows are
not enough (to support the market). I think after a sharp
rebound in the volume, a decent rebound will appear."
HONG KONG MUTED
After closing for two days for Christmas, Hong Kong shares
were up modestly, with the Hang Seng Index tacking on
just 0.3 percent and the China Enterprise Index of top
mainland companies nearly flat at midday.
"The mainland stock market has rebounded, transmitting
positive sentiment to the (Hong Kong) market. But some of the
mainland bank shares are still under pressure, so the Hang Seng
Index is only up moderately," said Patrick Yiu, a director at
Cash Asset Management in Hong Kong.
China Construction Bank was the biggest
drag on the Hong Kong index, losing 0.7 percent by midday, while
Bank of China lost 0.3 percent.
Internet giant Tencent led the index, rising 2.1
percent through midday, amid broader strength in tech stocks. An
index of Shanghai-listed information technology stocks
rose 1.7 percent.
Trading in Hong Kong was light at only 5.6 billion Hong Kong
dollars at midday, less than half of the 2013 low set on Dec.
"The market will continue to be quiet because index futures
have been swapped from December to January. Some investors would
like to take a holiday."
China's statistics bureau on Friday said that industrial
profits rose 13.2 percent year-on-year in the year to November,
0.5 percentage points slower than the January to October pace.