China shares end at new 3-month high; HK slips

* China shares at three-month closing high

* Hong Kong stocks fall on profit taking

* Debutant Evergrande advances
(Updates to close)

By Jun Ebias and Claire Zhang

HONG KONG/SHANGHAI, Nov 5 (Reuters) - Chinese shares rose to
a fresh three-month closing high on Thursday, as signs economic
recovery was picking up steam lifted sentiment, while Hong Kong
dropped as investors took profit.

The Shanghai Composite Index .SSEC climbed for a fifth
straight session to close up 0.85 percent at 3,155.053 points,
its highest close since Aug. 11.

Gaining Shanghai A shares outnumbered losers by 642 to 221,
while turnover remained active at 155 billion yuan, little
changed from Wednesday's 154 billion yuan.

The market drew support from comments by Chinese officials on
Thursday reaffirming the country's pro-growth policy stance even
as the pace of recovery gathers steam. [ID:nPEK132473]

China's October economic indicators, due next week, will
likely show that growth picked up more steam, with industrial
output rising at its fastest pace in 16 months, according to a
Reuters poll. Exports are improving and monetary conditions loose
enough to feed an acceleration in investment, the poll further
showed. [ID:nPEK149700]

"Confidence in the economic recovery and a likely major
improvement in fourth-quarter earnings could lift the index
higher," said Qian Xiangjing, senior analyst at CITIC-Kington
Securities in Hangzhou.

He pegged a near-term range for the index between its 10-day
moving average, now at 3,070 points, and 3,200 points.

The 14-day Relative Strength Index is at 61, not far from the
overbought mark of 70.

"The rally could continue in coming months, as institutions
hold positive views towards the index's outlook, the economy and
earnings," said Zhang Gang, strategist at Central Securities in
Shanghai. "Turnover looks active but any mild correction during
the rally is acceptable."

Shares that may benefit from plans for a Shanghai Disney
theme park were firmer.

The China Securities Journal reported that a Chinese property
developer won a bid for a plot of land close to the proposed park
in an auction on Wednesday at a price of 1.19 billion yuan
($174.3 million), or more than 14,000 yuan per square metre,
nearly four times the base price.

Shanghai Wai Gaoqiao Free Trade Zone Development (600648.SS)
gained its 10 percent daily limit to 19.79 yuan, while
Shanghai-based China Eastern Airlines (600115.SS) and Shanghai
Airlines (600591.SS) raced up their 5 percent daily limit.

Shanghai Jinjiang International Hotels Development
(600754.SS) rose 3.26 percent to 22.50 yuan, Shanghai Pudong Road
and Bridge Construction (600284.SS) jumped 4.39 percent to 15.22
yuan and Shanghai Construction (600170.SS) climbed 4.99 percent
to 16.82 yuan.

HONG KONG FALLS
In Hong Kong, the benchmark Hang Seng Index .HSI closed
down 0.63 percent, or 135.69 points, at 21,479.08, retreating
from a 1.76 percent gain in the previous session.

Turnover was up slightly at HK$60.77 billion ($7.8 billion),
versus Wednesday's HK$60.06 billion, a three-week low. But it was
below last Thursday's HK$80.81 billion, as most investors were
sidelined before U.S. jobless data due on Friday.

"We probably will move between 21,000 and 22,000 points for
quite some time," said Alex Wong, director at Ample Finance
Group. "The bulls and bears will probably continue to bet within
this range because there are no fresh incentives to break out of
it."

Chinese developer Evergrande Real Estate (3333.HK) rose 34.3
percent, the second firm this week to rise on its first trading
day in Hong Kong.

Hong Kong developers remained under selling pressure on
concerns the government may impose more measures to cool property
prices, crimping profits. Sung Hung Kai Properties (0016.HK) was
down 1.73 percent.

Swire Pacific (0019.HK) slipped 3.36 percent on profit
taking. The conglomerate surged in previous sessions after news
of its plan to spin-off and list its property unit on the
mainboard. [ID:nHKG152788]

Bank of East Asia (0023.HK) rose 3.33 percent on a rosy
earnings outlook. Phillip Securities said in a note that the
lender's net interest margin may rise in 2010, driven by loan
expansion in China and higher interbank rates in Hong Kong.

The China Enterprise Index .HSCE of top locally listed
mainland Chinese stocks fell 0.19 percent to 12,805.26.

Advertising company Media China (0419.HK) was down 7.27
percent. The company said it planned to raise up to HK$357.6
million ($46.14 million) by selling 7.4 billion rights shares.

Bucking the trend, AviChina Industry & Technology (2357.HK)
advanced 24.1 percent. The company said it was in a 2.37 billion
yuan ($347.2 million) asset swap with a controlling shareholder.

China Unicom (0762.HK) gained 3.78 percent, extending
Wednesday's 2.55 percent rise after it said it had signed up more
than 1 million 3G subscribers.

(Editing by Jacqueline Wong)