* HSI +0.4 pct, H-shares +1.2 pct, CSI300 +.2 pct
* Railway stocks up on stimulus announcement
* Prada slides after earnings results disappoint
By Natalie Thomas and Chen Yixin
SHANGHAI, April 3 Chinese shares listed in Hong
Kong rose more than 1 percent to a six-week high on Thursday,
with rail firms getting a lift after China's government
announced increased investment in rail infrastructure to help
boost the economy.
Hong Kong shares were also underpinned on news that mainland
investors may receive greater access to buying stocks on the
Hong Kong exchange.
By midday, the China Enterprises Index of the top
Chinese listings in Hong Kong was up 1.2 percent, having hit its
highest intraday level since Feb. 20. The main Hang Seng Index
was up 0.4 percent at 22,611.72 points.
The CSI300 index of the largest Shanghai and
Shenzhen A-share listings was up 0.2 percent, while the Shanghai
Composite Index was down 0.2 percent at 2,055.95 points.
Chinese media reported on Wednesday that Hong Kong Exchanges
and Clearing Ltd (HKEx) had reached an agreement with
the Shanghai bourse to offer investors mutual access to each
others' markets. HKEx confirmed that it and its mainland
counterparts were in talks but said no agreement had yet been
While analysts welcomed the news, they also sounded a note
of caution, pointing to a lack of details and a history of
similar moves in the past that were ultimately either scrapped,
or found limited investor demand.
"Of course the news is good, it's positive, but it's not
that exciting, because we still need to know how big the quota
for the QFII and the QDII would be, we need more details," said
Linus Yip, a strategist with First Shanghai Securities,
referring to qualified investment quotas.
HKEx shares jumped 5.4 percent Wednesday on the report, its
biggest one-day percentage rise in over a year, before trade in
the stock was suspended. The stock was up 0.2 percent after
reopening on Thursday.
Rail shares soared after China's government said it would
speed up the construction of railway lines in a bid to add juice
to the economy.
The Chinese cabinet announced that it would increase the
total length of lines laid this year by 18 percent compared with
2013 and speed up projects that have already been approved after
its weekly meeting on Wednesday.
China Railway Construction Corp gained
7 percent in Hong Kong and 2.5 percent in Shanghai, while CSR
Corp Ltd gained 3.3 percent in Hong Kong
and 1.1 percent in Shanghai.
Mainland index gains where limited, though, due to a
pullback in property shares following Wednesday's strong gains
on reports that some cities may relax property ownership
"Actually, this was speculation in the market, market
conditions do not support a sharp rise in property shares," said
Xiao Shijun, analyst at Guodu Securities in Beijing.
The CSI300 property subindex declined 0.8
percent, with Beijing Vantong Real Estate Co losing
7.7 percent and Shanghai Jinfeng Investment Co
dropping 6.3 percent.
In Hong Kong, Prada shares fell 6.9 percent, their
biggest percentage drop in 2-1/2 years, after the Italian luxury
fashion group reported full-year earnings that missed analyst
estimates and forecast sales to rise by single-digit percentages
(Reporting By Natalie Thomas; Editing by Chris Gallagher)