* HSI +0.2 pct, H-shares -0.3 pct, CSI300 +0.4 pct
* ChiNext strong as investors return to growth stocks
* Defence firms strong after Xi calls for military
* Macau gaming sector weak ahead of August data
(Updates to midday)
By Grace Li
HONG KONG, Sept 1 Chinese shares rose on Monday,
with defence and media names leading the gains, shrugging off a
lower-than-expected official Purchasing Managers' Index (PMI)
that added to signs of softness in the economy.
Hong Kong's benchmark index also started the month on a
firmer footing as some heavyweight stocks regained momentum
after falling last week, but the H-share index fell a bit.
China's official PMI slipped from a 27-month high to 51.1 in
August, the government said on Monday, just short of the median
forecast of 51.2 in a Reuters poll.
By midday, the Hang Seng Index had inched up 0.2
percent to 24,784.56. The China Enterprises Index of the
top Chinese listings in Hong Kong was off 0.3 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings added 0.4 percent, while the Shanghai Composite
Index was up 0.6 percent at 2,229.55.
"The market had made adjustments after the bad credit data,
HSBC PMI, and some other weak economic figures released
earlier," said Zheng Weigang, a senior trader at Shanghai
Securities. "Funds have been gradually transferring to those hot
spots, the non-cyclical sectors."
The Nasdaq-style ChiNext Composite Index of
mostly high-tech start-ups listed in Shenzhen was up 1.6
percent, its biggest rise in two weeks.
Defence stocks extended gains on Monday, bolstered by
President Xi Jinping's comment that China will spur military
innovation. [ID: nL3N0R00AZ]
AVIC Aircraft jumped 5.7 percent and China Avic
Electronics climbed 4.9 percent.
Media companies posted strong gains after a recent
correction. Anhui Xinhua Media soared the maximum
allowed 10 percent and People.cn 8.3 percent.
In Hong Kong, insurer AIA Group leapt 2.5 percent,
while Tencent Holdings edged up 0.9 percent. Both
suffered losses last week on profit-taking.
Macau casinos were weak ahead of August gambling revenue
data due later in the day. Sands China, MGM China
and Wynn Macau all shed more than 2 percent.
On Saturday, casino dealers working for the gambling hub's
SJM Holdings started industrial action for the first
time in the Chinese territory as discontent over salaries and
working benefits spreads. SJM lost 1.5 percent.
(Editing by Alan Raybould)