* HSI -0.5 pct, H-shares -0.6 pct, CSI300 +0.7 pct
* China property sector jumps on easing expectations
* Li Ning at 3-month low after it warns of deeper H1 losses
* Liquor-makers rise on hopes for Hong Kong-Shanghai linkage
(Updates to midday)
By Grace Li
HONG KONG, July 18 China shares rose on Friday
morning, reversing early losses as property counters surged
after soft home price data triggered expectations of more
mini-stimulus by local governments.
Hong Kong's benchmark index opened down almost 1 percent,
following weaker U.S. bourses after news of a downed Malaysian
airliner at the Ukraine-Russia border rattled investors.
Nearly 300 people were killed. A Ukrainian official said a
missile was fired at the plane.
Some of Hong Kong's losses were erased after China markets
At midday, the Hang Seng Index was off 0.5 percent at
23,415.99 points. The China Enterprises Index of the top
Chinese listings in Hong Kong slipped 0.6 percent.
On the week, the two indexes were up 0.8 and 0.3 percent,
The CSI300 of the leading Shanghai and Shenzhen
A-share listings rose 0.7 percent, while the Shanghai Composite
Index was up 0.4 percent at 2,063.76 points. They are
now up 1.1 and 0.8 percent this week.
"It's mainly sentiment-driven today because of the airliner
attack," said Steven Leung, sales director at brokerage UOB Kay
Hian in Hong Kong.
"But after the Chinese property prices (data) was released,
investors tended to be more optimistic because they expect
further policy-easing in China," Leung added.
China's average new home prices fell in June from May for a
second straight month. Prices are expected to continue declining
in coming months, and if they fall sharply, that could be a
challenge to Beijing.
Expectations for more housing policy loosening by local
governments were increased by a report in the 21st Century
Business Herald. It said the new housing minister told a meeting
that clearing inventories is a main second-half goal.
China Vanke added 3.8 percent in Shenzhen and
Poly Real Estate jumped 6.4 percent in Shanghai.
China Overseas Land & Investment rose 1.2 percent in
The CSI300 real estate subindex was up 3.5
percent, the biggest one-day rise since April 2.
Chinese liquor makers were again outperformers on Friday, as
investors expect the sector to draw interests from overseas
funds helped by the coming Hong Kong-Shanghai Stock Connect
project, which allows Hong Kong and mainland investors buy
stocks in each other's market.
Kweichow Moutai, the top index boost, gained 5.6
percent and Anhui Gujing Distillery soared 7.8
percent to its highest in five months.
Shares of Chinese sportswear maker Li Ning tumbled
9.3 percent to a three-month low.
The company said late Thursday it expected that one-off
charges and the cost of expanding its direct sales network will
widen its January-June net loss to at least 550 million yuan
($1 = 6.2017 Chinese Yuan)
(Editing by Richard Borsuk)