* HSI +1.2 pct, H-shares +1.6 pct, CSI300 +1.3 pct
* China property sector lifted by provincial-level easing
* Orient Overseas jumps as earnings top forecast
* Brightoil surges after closing deal with Anadarko (Updates to midday)
By Grace Li
HONG KONG, Aug 11 (Reuters) - Hong Kong and China shares started the week strongly, with property and financial counters leading gains, as mild Chinese consumer inflation data on Saturday gave authorities room to further relax monetary policy.
The Hong Kong market was also lifted by Friday’s Wall Street rally rooted in an easing of tensions in Ukraine.
At midday, the Hang Seng Index was up 1.2 percent at 24,620.08 points and appeared on track to snap a three-day losing streak. The China Enterprises Index of the top Chinese listings in Hong Kong rose 1.6 percent.
The CSI300 of the leading Shanghai and Shenzhen A-share listings climbed 1.3 percent, while the Shanghai Composite Index added 1.1 percent to 2,218.00 points.
“The overall market activity is still at a relatively high level, as money had flowed in recently,” said Du Changchun, an analyst at Northeastern Securities in Shanghai.
On Saturday, official data showed that the consumer price index (CPI) held steady at 2.3 percent year-on-year in July, while the producer price index (PPI) fell for the 29th consecutive month.
Du said he expected mainland stocks to keep rallying as “many positive factors including the Hong Kong Shanghai Stock Connect scheme are still there.”
On Saturday, the 21st Century Business Herald reported that the Shanghai Stock Exchange would start tests for the cross-border connection on Monday, with all tests expected to finish by Sept. 30.
Chinese property counters bounced back after last week’s losses. In a circular published on Friday, the Fujian provincial government not only relaxed restrictions on house purchases in major cities but also asked banks to give easier credit to property buyers.
China Vanke climbed 2.1 percent and Poly Real Estate 1.4 percent.
Their Hong Kong-listed peers led gains on the Hang Seng. China Resources Land jumped 6.3 percent and China Overseas Land & Investment spiked 4 percent.
Orient Overseas International Ltd gained 4.5 percent to its highest since October after reporting first-half profit that beat forecasts.
Shares of Brightoil Petroleum Holdings soared 7.5 percent to a 4-month high after the oil trader said late on Sunday it had completed the acquisition of Anadarko Petroleum Corp’s China unit for $1.05 billion. (Editing by Richard Borsuk)