* HSI +0.7 pct, H-shares +1.4 pct, CSI300 +0.6 pct
* Markets lifted after China flash PMI at 5-mth high
* PetroChina hits 6-month high after China-Russia gas deal
* China CNR dips below offering price in HK debut
(Updates to midday)
By Grace Li
HONG KONG, May 22 Hong Kong and China shares
rose on Thursday helped by a preliminary private survey that
suggested China's factory sector turned in its best performance
in five months in May.
China's gas-related stocks were also buoyed by a
long-awaited gas deal between China and Russia, expected to help
stabilise gas supply and prices on the mainland.
By midday, the Hang Seng Index was up 0.7 percent at
23,005.27 points, hitting its highest since April 15. The China
Enterprises Index of the top Chinese listings in Hong
Kong jumped 1.4 percent.
The CSI300 gained 0.6 percent, while the Shanghai
Composite Index was up 0.4 percent at 2,033.25 points.
Mainland shares bounced back to positive territory after the
HSBC/Markit flash Purchasing Managers' Index (PMI) ticked up to
a five-month high of 49.7 in May, from April's final reading of
48.1. But it remained under the 50-point level that demarcates
expansion from contraction.
"The data is better than the market had expected," said
Zhang Qi, a Shanghai-based analyst with Haitong Securities. "But
whether the upward trend can continue depends on whether capital
would constantly go to some blue chips."
PetroChina rose 1.1 percent in Hong Kong to its
highest since November, after its parent firm, China National
Petroleum Corp, signed a $400 billion gas supply deal with
Russia's Gazprom late on Wednesday.
The whole gas sector was boosted by the news, with Changchun
Gas Co Ltd surging the maximum allowed 10 percent in
Shanghai and Shenzhen Gas Corp Ltd jumping 6.1
Leading the gains in the onshore Chinese markets were also
property developers, shrugging off a downgrade by Moody's on
Wednesday to negative from stable.
China Fortune Land Co Ltd rebounded 7.1 percent
in Shanghai from its two-month low on Tuesday, while China Vanke
gained 1.8 percent in Shenzhen.
The improving mood, however, failed to lift the Hong Kong
debut of China CNR Corp Ltd , the world's
largest train maker by sales. The company's shares fell to
HK$5.1, below the HK$5.17 offering price, itself at the lower
end of the marketed HK$5.00-HK$6.20 range.
In Hong Kong, Li & Fung rose 2.8 percent in their
best day in 9 weeks. The global exporter said the Hong Kong
stock exchange would review its application for a separate
listing of its global brands business, of which its shareholders
will receive one share of the spin-off unit for every share they
own in Li & Fung.
(Reporting by Grace Li; Editing by Jacqueline Wong)