* CSI300 +0.6 pct, SSEC +0.5 pct
* Property stocks decline on house price deflation worries
* Rail shares increase on further investment plans
By Natalie Thomas
BEIJING, May 6 China shares steadied on Tuesday,
with gains limited by weakness in the property sector as
investors braced for any signs of financial distress among
developers as the market cools.
By midday, the CSI300 index of the largest
Shanghai and Shenzhen A-share listings was up 0.6 percent, while
the Shanghai Composite Index edged 0.5 percent higher to
The CSI300 real estate index continued to
underperform, down 0.1 percent by the lunch break, even after
Chinese media reported that Tongling in Anhui Province was the
fifth city to introduce measures to prop up the property market.
Financial Street Holdings Co Ltd was the biggest
drain on the sub-index, down 7.9 percent after the firm said it
expected its net profit to decrease between 30 and 50 percent
over the first half of 2014.
But other major losers from Monday's deeper sell-off
regained ground. China Vanke Co Ltd was up 1.0
percent, while Beijing Urban Construction and Investment Co Ltd
gained 1.8 percent.
Investors continued to buy up rail stocks after Chinese
media reported further infrastructure plans, this time financed
by local governments for intercity rail expansion projects.
China Railway Construction Corp Ltd jumped 2.2
percent, while China Railway Group Ltd gained 0.8
One of the day's biggest winners was struggling steel
producer Inner Mongolia BaoTou Steel Union Co Ltd,
which saw its share price jump 6.9 percent after it acquired
rare earth assets from its parent company Baogang Group as part
of plans to focus more on rare earth production.
The Hong Kong stock exchange was closed on Tuesday for a
holiday to mark the Buddha's birthday and will resume trading on
Wednesday, May 7.
(Editing by Jacqueline Wong)