* HSI +0.4 pct, H-shares +0.4 pct, CSI300 +0.3 pct
* China's 3 largest carriers rise after deal on
* Auto sector strong again as govt encourages 'green' cars
* Macau casinos weaker amid graft probe into a land deal
(Updates to midday)
By Grace Li
HONG KONG, July 14 Hong Kong shares rose on
Monday with China's three state-owned wireless carriers leading
gains, while mainland markets were also stronger as auto stocks
extended their advance on new policy support.
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings climbed 0.3 percent, while the
Shanghai Composite Index was up 0.4 percent at 2,054.83
The Hang Seng Index and the China Enterprises Index
of the top Chinese listings in Hong Kong each added 0.4
percent. The benchmark index stood at 23,320.83 points, after
earlier climbing above 23,450.
The Hong Kong benchmark has risen more than 7 percent since
Jackson Wong, vice-president of Tanrich Securities in Hong
Kong, said inflows of funds over the weekend cheered the market.
"That's a pretty good sentiment booster right now," he said.
Analysts said one indication of hot money inflows is a
series of currency market interventions by Hong Kong's central
bank to defend the city's peg to the U.S. dollar.
On Friday alone, the Hong Kong Monetary Authority (HKMA)
sold HK$10.540 billion (US$1.36 billion) as the local currency
hit the strong end of its trading range.
On Monday, China Unicom climbed 3.4 percent, the
top percentage gainer among Hang Seng components, while China
Mobile and China Telecom moved up 2.2 and
2.8 percent, respectively.
The country's three largest telecoms said late on Friday
they had agreed to jointly establish a telecommunications tower
company with a registered capital of 10 billion yuan ($1.61
billion), which analysts said would cut their costs.
China Communications Services, a related equipment
supplier, jumped 7.2 percent to a 2-1/2 month high.
The auto sector was strong again after posting solid gains
on Friday helped by a tax exemption on green cars.
In a notice published on Sunday, China urged government
officials to use more electric and plug-in hybrid cars as part
of its drive to cut pollution. It aims to put 5 million such
vehicles on the road by 2020.
SAIC Motor Corp rose 1.7 percent, following
Friday's 1.6 percent, to its highest since Dec. 10. BYD
gained 3.7 percent in Hong Kong, leading H-share
Casinos were underperformers as a probe into a land deal
relating to Wynn Macau by Macau's corruption agency
Beijing is due to release its second-quarter growth figure
on Wednesday. The pace is expected to hold firm at 7.4 percent
and anything less than that would likely unsettle markets.
Investors are also watching for June money supply and loan
growth, due by Tuesday. Monthly urban investment, industrial
output and retail sales figures are also expected on Wednesday.
($1 = 7.7499 Hong Kong Dollars)($1 = 6.2068 Chinese Yuan)
(Editing by Richard Borsuk)