* HSI +0.3 pct, H-shares +1.0 pct, CSI300 +1.3 pct
* China Shenhua rises after raising coal prices
* China Everbright jumps as parent group gets approval for
* HSBC slips ahead of H1 earnings
(Updates to midday)
By Grace Li and Lu Jianxin
HONG KONG/SHANGHAI, Aug 4 China shares regained
momentum on Monday on positive market comments from the
country's top securities regulator, while gains in Hong Kong
were restrained by weak property developers.
A China Securities Regulatory Commission (CSRC) spokesman on
Friday described the recent rally in China's stock market as a
"rebound" due to improving performance in the economy, more
liquidity, and market reforms, including the planned
Shanghai-Hong Kong stock market connector pilot programme.
By midday, the Hang Seng Index was up 0.3 percent at
24,615.61 points, while the China Enterprises Index of
the top Chinese listings in Hong Kong rose 1.0 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings gained 1.3 percent. The Shanghai Composite
Index was up 1.1 percent at 2,210.27 points.
"The CSRC comments are good news. Basically the market has
entered into an uptrend," said Zhang Qi, a Shanghai-based
analyst with Haitong Securities.
"But since it has gained so much, some fluctuations in the
short term are understandable. The key is still whether
follow-up funds can continue to flow into blue chips," Zhang
China's benchmark index, the Shanghai Composite, has jumped
more than 6 percent over the past two weeks.
Brokerage firms led gains on the CSI300, encouraged by
comments from the CSRC spokesman who said the regulator would
continue to support their innovative business development.
CITIC Securities jumped 5.1 percent, while
Haitong Securities climbed 3.6 percent.
China Shenhua Energy rose 2.7 percent
in Shanghai and 2.6 percent in Hong Kong. The mainland's biggest
coal producer raised prices of steam coal on Friday after
cutting prices seven times within less than two months,
according to a report from China Business News.
Shares of HSBC Holdings eased 0.4 percent ahead of
interim earnings later in the day. They are down 2.1 percent in
2014, compared with a 5.6 percent rise in the Hang Seng Index.
The bank is expected to report an 11 percent fall in profit
for the first half, hurt by declining revenue in a pared down
business and lower income from Latin America and investment
banking at the start of the year.
The recently outperforming property sector continued to
retreat in Hong Kong, with Sun Hung Kai Properties
down 1.2 percent and Cheung Kong Holdings 0.6 percent.
China Everbright Bank leapt 5.3
percent in Shanghai and 3 percent in Hong Kong, after it said
late on Friday its parent China Everbright Group had won state
council approval to change its shareholding structure.
(Editing by Jacqueline Wong)