* HSI +1.6 pct, H-shares +2.5 pct, CSI300 +0.5 pct
* Hong Kong and H-shares at one-week high on policy optimism
* Chinese insurers and energy plays lead gains
By Yimou Lee
HONG KONG, Feb 11 Hong Kong shares are set to
post their best daily gain in nearly 3 months on Tuesday, led by
Chinese insurers and energy counters on optimism that Beijing
will likely unveil more policy that could favor earnings growth
in some sectors.
China shares reversed early losses and extended gains after
closing at their highest in nearly six weeks on Monday as
liquidity concerns eased after the Lunar New Year holiday.
By midday, the Hang Seng Index was up 1.6 percent at
21,925.04 points and appeared on track for its best day since
Nov. 18. The China Enterprises Index of the top Chinese
listings in Hong Kong gained 2.5 percent to its highest in
almost two weeks.
The CSI300 index of the leading Shanghai and
Shenzhen A-share listings rose 0.5 percent to its highest since
Jan. 6. The Shanghai Composite Index was up 0.4 percent
at 2,093.58 points. Both appeared on track for a third straight
"Ahead of the National People's Congress, there are some
expectations about the upcoming policy initiatives," said Ben
Kwong, Hong Kong-based chief operating officer of stockbroker
KGI Asia, referring to the March meeting of China's rubber stamp
"After the Lunar New Year holiday, the liquidity situation
in China is not that tight, and we also expect less IPO
activities in the A-share market this month," Kwong said.
China has announced a litany of policy announcements seen
favourable to earnings growth for sectors from autos to insurers
Leading gains were Chinese energy and insurer plays.
PetroChina, Asia's largest oil and gas producer, rose
1.7 percent after its parent made one of China's largest gas
discoveries in more than a decade. China Petroleum & Chemical
Corp (Sinopec) gained 2.4 percent.
Ping An Insurance Group Co of China Ltd jumped 4.6
percent to its highest in almost two weeks, while China Life
Insurance surged 5.1 percent and was set for its best
day in more than two months.
Shares in China Shipping Container Lines
rose 2.7 percent in Hong Kong and 0.9 percent in
Shanghai after Barclays analysts upgraded the company to
"overweight" from "equal Weight".
Haitian Flavouring & Food Co. jumped 44 percent
in its debut before trading was halted in Shanghai. The Shanghai
Stock Exchange will crack down on any unusual trading patterns
detected in Hai Tian Flavouring's market debut later on Tuesday,
the bourse announced on its microblog feed.