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China stocks rise on consumption incentives; HK slips

 * China consumer sector rises on incentives
 * China property counters, automaker slip on Beijing policy
 * China Longyuan Power gains in debut
 (Updates to close)
 By Jun Ebias and Claire Zhang
 HONG KONG/SHANGHAI, Dec 10 (Reuters) - Chinese stocks rose on
Thursday, as Beijing's move to extend incentives to boost
domestic demand spurred consumer sector shares, while Hong Kong
slipped for a fifth straight session.
 The Shanghai Composite Index .SSEC ended up 0.45 percent at
3,254.264 points.
 Gaining Shanghai A shares outnumbered losers by 658 to 213,
while turnover dropped to 112 billion yuan ($16.40 billion), its
lowest in nearly two months, from Wednesday's 136 billion yuan,
ahead of key November economic data due on Friday.
 China tweaked its consumption incentives to address potential
market bubbles, which could dampen car and housing sales growth,
although it extended certain stimulus measures that have helped
to drive car and home appliance sales to record levels.
[ID:nTOE5B80BG]
 The consumer sector was firmer. Chinese television maker
Hisense Electric 600060.SS was up 5.73 percent at 24.34 yuan.
 "More newly launched mutual funds are expected to buy stocks
and the index should find support around 3,200 points. The
November economic data is also expected to be positive," said
Chen Huiqin, senior analyst at Huatai Securities in Nanjing.
 The official Shanghai Securities News reported that 108
mutual funds have raised 359 billion yuan so far this year with
14 new funds expected to close by year-end, potentially bringing
the total to 400 billion yuan.
 Property sector heavyweight China Vanke 000002.SZ slid 1
percent to 11.91 yuan on signs that Beijing will crack down on
speculation in the property market while raising the supply of
lower-cost housing. [ID:nTOE5B80AB]
 In Hong Kong, Evergrande Real Estate 3333.HK slid 2.76
percent; Glorious Property 0845.HK was down 3.99 percent and
Shimao Property 0813.HK slipped 2.47 percent.
 China has also picked up the pace of big new share offers,
with China CNR Corp, one of the country's top two train makers,
saying it planned to raise 6.44 billion yuan by issuing
yuan-denominated A shares in Shanghai. [ID:nTOE5B80CL]
 "The new share offerings look like an effort to forestall a
potential asset price bubble, and given the unclear picture for
fundraising in the banking sector, the index is unlikely to
manage a rally to this year's high (at 3,478 points) before the
end of the year," said Zhang Xiang, chief strategist at Guodu
Securities in Beijing.
 The auto sector was mixed after Beijing said it would
continue its incentives but at more modest levels.
 FAW Xiali Automobile 000927.SZ advanced 1.58 percent to
10.28 yuan, extending a rally on Wednesday, but SAIC Motor
600104.SS dipped 0.42 percent to 25.82 yuan.
 But Hong Kong-listed Denway Motors 0203.HK lost 8.13
percent and Geely Automobile 0175.HK shed 8.24 percent.
 Banks steadied after two days of declines. Industrial and
Commercial Bank of China (ICBC) 601398.SS edged up 0.38 percent
at 5.24 yuan.
 HONG KONG POSTS 5-DAY LOSS
 The benchmark Hang Seng Index .HSI was down 0.19 percent,
or 41.72, at 21,700.04, its lowest in nearly two weeks. The index
has fallen 3.8 percent since last Friday.
 The China Enterprises Index .HSCE of top locally listed
mainland Chinese stocks was down 0.26 percent at 12,866.13.
 Turnover was up at HK$82 billion ($10.6 billion) from
Wednesday's HK$74.5 billion.
 "Sentiment turned a bit negative over the last week," said
Jackson Wong, investment manager at Tanrich Securities.
 "A lot of investors have already hit their targets for this
year, others are taking profits from the table and are unwilling
to take more risks."
 Debutant China Longyuan Power 0916.HK, the most actively
traded stock, outperformed the market and was up 9.4 percent,
versus its IPO price of HK$8.16. The stock rose to as high as
HK$9.26 a share. [ID:nTOE5B80BF]
 Global Green Tech Group 0274.HK surged 13.13 percent. The
biotechnology and cosmetics products maker said it would
diversify into the gold mining industry by acquiring a majority
stake in gold mines in Yuanling County in Hunan Province.
 South Sea Petroleum Holdings 0076.HK rose 10.64 percent.
The firm said it would issue $100 million in 6 percent interest
convertible debentures due 2015 to fund expansion projects.
 Index heavyweight HSBC 0005.HK erased some gains and closed
up 0.45 percent. The stock rose by as much as 1.7 percent
earlier, rebounding from four days of losses on  worries over the
lender's exposure in troubled Dubai World.
 Wing On Travel 1189.HK dropped for a second day, down 5.88
percent. The stock slumped 19.05 percent on Wednesday after it
said it would raise money through rights issues and bond sales.
 (Editing by Ken Wills)





























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