* CSI300 +0.3 pct; SSEC +0.2 pct; HSI +0.8 pct
* China bond yields fall as economic data spurs easing hopes
* Vanke leads rally in China property shares
SHANGHAI, Aug 12 (Reuters) - China stocks climbed on Friday morning, led by financial and property shares, as government bond yields continue to fall, reflecting bets that worse-than-expected economic data would prod Beijing to launch fresh easing.
Hong Kong shares were also firm, hitting a nine-month intraday high, as Asian investors took cues from Wall Street’s records overnight.
China’s blue-chip CSI300 index rose 0.3 percent, to 3,243.63 points by lunch break, while the Shanghai Composite Index gained 0.2 percent, to 3,009.71 points.
Data released on Friday showed that growth in China’s fixed-asset investment, industrial output and retail sales all missed forecasts, while property investment and sales growth continues to moderate.
The disappointing data prompted bets on further easing.
“The marked economic slowdown means there’s still need for further easing,” wrote Li Huiyong, economic at Shenwan Hongyuan Securities.
“Since it takes time for policies to take effect .. Our suggestion is that easing should be launched as soon as possible.”
China’s benchmark 10-year bond yields continue to drop on Friday, hitting a fresh low since Jan, 2009.
But Fu Xuejun, analyst at Huarong Securities, said recent messages from policymakers suggest Beijing is unlikely to loosen monetary policies on a big scale, fearing too much liquidity will feed asset price bubbles, instead of reinvigorating the economy.
Nevertheless, lower bond yields make those high-dividend blue-chips a bit more attractive, he said.
Financials were firm, while there was renewed interest in China’s property shares following the previous session’s correction, with sector bellwether Vanke jumping 5.7 percent in Shenzhen.
In Hong Kong, the Hang Seng index added 0.8 percent, while the Hong Kong China Enterprises Index gained 1.4 percent, as overnight performance in U.S. stocks lifted sentiment.
The S&P 500, the Dow and Nasdaq all closed at historic highs on Thursday for the first time since 1999 on higher crude oil and upbeat corporate results.
Samuel Shen and Pete Sweeney; Editing by Sam Holmes
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