* HSI +0.2 pct, H-shares +0.7 pct, CSI300 +0.8 pct
* China aerospace sector soars on hopes for more state
* Galaxy Entertainment at to 2-month high after chairman's
* Hong Kong closed on Tuesday for a public holiday
(Updates to midday)
By Grace Li
HONG KONG, June 30 China shares rose early on
Monday, lifted by a surging aerospace sector and broadly
stronger banks while Hong Kong markets also advanced with Macau
casinos leading gains.
At midday, the Hang Seng Index was up 0.2 percent at
23,276.55 points. The China Enterprises Index of the top
Chinese listings in Hong Kong gained 0.7 percent.
For the quarter, they were up 5.1 and 3.0 percent,
The CSI300 of the leading Shanghai and Shenzhen
A-share listings rose 0.8 percent, while the Shanghai Composite
Index was up 0.7 percent at 2,050.07 points.
Both mainland indexes were holding onto quarterly gains of
1.0 and 0.8 percent, respectively.
"The market sentiment is stabilizing. We didn't see a cash
crunch as we saw this time last year, thanks to the policy of
targeted loosening," said Guo Yanling, senior analyst at
"But the momentum is not enough to lead to an overall
rebound, as the strong performance of new initial public
offerings will continue to divert funds from existing stocks,"
On Monday, a fourth new mainland listing - Shanghai Lianming
Machinery - surged the maximum allowed 44 percent on
its trading debut in Shanghai. The three listings which started
trading on Thursday in Shenzhen rose 10 percent, the maximum
allowed on days after the first one, as they did on Friday.
Guo said the outlook for the A-share market in coming months
is brightening, with improved liquidity conditions and
expectations for targeted stimulus measures in the second half.
In Shanghai, four aerospace firms soared the maximum allowed
10 percent. Analysts said investors chased defence-related
stocks on speculation tensions with neighbouring countries would
spur Beijing to spend more on the sector.
Macau gambling firms were again key outperformers on the
Hang Seng. Galaxy Entertainment Group climbed 3.9
percent to its highest since April 28, after its founder and
chairman Lui Che-Woo said on Friday that China's slowdown won't
hurt business. Sands China also gained 2 percent.
China Telecom Corp was up 3.0 percent and China
Unicom Hong Kong 0.7 percent after they received
high-speed 4G mobile network test licences for the FDD-LTE
standard in 16 cities late on Friday.
Rival China Mobile dropped 0.5 percent, the
largest drag on Hong Kong's benchmark index.
Tencent Holdings inched up 0.1 percent to a 3-1/2
month high after China's biggest listed tech firm said it would
buy 20 percent of online classifieds company 58.com Inc
for $736 million.
Hong Kong will be closed on Tuesday for a holiday.
(Editing by Richard Borsuk)