* HSI -0.1 pct, H-shares +1.0 pct, CSI300 +0.2 pct
* Chinese coal shares up report of more trading markets
* Lenovo rises to 5-week high ahead of earnings
(Updates to midday)
By Donny Kwok and Chen Yixin
HONG KONG/SHANGHAI, May 21 China shares rose
slightly on Wednesday, helped by coal stocks after a news report
the National Development and Reform Commission (NDRC) plans to
establish two or three national markets for coal trading.
A Reuters report that China is allowing local governments to
sell municipal bonds in an experiment to clean up messy state
budgets also improved sentiment, brokers said.
The CSI300 of the leading Shanghai and Shenzhen
listings was up 0.2 percent, while the Shanghai Composite Index
rose 0.1 percent to 2,010.96 points.
"It's clear that there are some funds to support the index
moving above 2,000 points and today's focus is the coal and
software industries," said Zheng Weigang, analyst at Shanghai
Securities in Shanghai.
At midday, the Hang Seng Index was down 0.1 percent
at 22,813.21 points. The China Enterprises Index of the
top Chinese listings in Hong Kong was up 1 percent.
The report on the planned China coal markets was published
in the China Securities Journal.
Almost all coal-related companies rose on the report, with
Datong Coal Industry Co surging 8.7 percent and
Houlinghe Opencut Coal Industry Corporation Ltd of Inner
Mongolia climbing 5.5 percent.
Shares in software firms also rose on Wednesday, as
investors saw brighter prospects for them due to reduced foreign
competition after China banned government use of Windows 8,
Microsoft Corp's latest operating system.
China National Software & Service Company Limited
jumped by the 10 percent daily limit and Shanghai
Amarsoft Information & Technology Co rose 8.5
percent. Both hit their highest in six weeks.
"Investors were convinced that the relative high valuation
of China's tech-stocks was justified after firms like Tencent
reported solid earnings," said Steven Leung,
a director at UOB Kay Hian in Hong Kong.
In Hong Kong, shares of Lenovo Group Ltd rose 1.9
percent prior to their earnings statement. At the midday break,
the Chinese personal computer maker said its 2013/14 net profit
rose 28.7 percent year on year to $817.2 million for the fiscal
year ended in March.
(Reporting by Donny Kwok; Editing by Richard Borsuk)