* HSI +0.3 pct, H-shares +0.1 pct, CSI300 +0.1 pct
* CSI300 in eighth consecutive winning session
* Shanghai FTZ-related stocks jump ahead of a new law
* China South City drops after reports on bulk sale of its
(Updates to midday)
By Grace Li
HONG KONG, July 29 China shares hovered near the
year's highs on Tuesday while Hong Kong's key index edged up
from its best close in more than 3-1/2 years on spillover from
improving views of the Chinese economy.
By midday, the Hang Seng Index rose 0.3 percent to
24,493.41 points. The China Enterprises Index of the top
Chinese listings in Hong Kong inched up 0.1 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings and the Shanghai Composite Index each
added 0.1 percent. The Shanghai benchmark stood at 2,180.52
points. Both swung between negative and positive territory in
The CSI300 is now in its eighth consecutive winning session,
having climbed almost 8 percent in the past seven sessions.
Volumes stayed robust in Shanghai, with midday turnover some
74 percent above its average in the last 20 days, though it
dipped a bit from Monday's spectacular amount.
"The recent rally in the Hong Kong and China stock markets
is pretty much liquidity-driven due to favourable fund flows.
And fund flows are maybe because the two markets remain
relatively lagging behind in terms of valuation and
performance," said Ben Kwong, director at KGI Asia in Hong Kong.
On Tuesday, stocks related to Shanghai's Free Trade Zone
(FTZ) outperformed, ahead of a new law to provide a legal basis
for reform measures in the pilot zone which is to take effect on
Shanghai International Port Group and Shanghai
Lujiazui Finance & Trade Zone Development were among
top index boosts in Shanghai, climbing 1.8 and 6.2 percent,
China South City Holdings sank 5.0 percent after
closing at a 4-1/2-month high the previous session.
Investment fund Pacific Alliance Asia Opportunity Fund
plans to sell 250 million of its shares, or 3.3 percent
of the issued share capital, the Hong Kong Economic Journal
reported on Tuesday.
Bank of Communications spiked another 2.6
percent following a 9.9 percent jump the previous day. The
country's fifth-largest lender said late on Monday it is
studying feasibility plans for the implementation of hybrid
ownership reforms to help improve its competitiveness.
(Editing by Jacqueline Wong)