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HK, China shares rise; China Pacific up on debut

 * HK stocks rise on property issues ahead of land auction
 * China up 0.76 pct led by telecommunications issues
 * China Pacific Insurance holds above issue price on debut
 (Updates to close)
 HONG KONG/SHANGHAI, Dec 23 (Reuters) - Hong Kong shares
gained for second straight session led by property plays on hopes
for strong response to a government land auction early next week,
while China stocks gained with telecommunications plays up on
strong subscriber growth.
 Anticipation of strong results from a Hong Kong government
land auction to be held on Monday fuelled buying for local
property stocks. Henderson Land 0012.HK rose 4.01 percent,
Wharf 0004.HK climbed 3.03 percent, Sun Hung Kai Properties
0016.HK gained 2.81 percent and Sino Land 0083.HK was up 2.68
percent.
 "Optimism over the land auction results fuelled buying
interest for local property issues, but it might not be
indicative in subdued trade," said Linus Yip, strategist at First
Shanghai Securities, adding that the underlying tone of the
overall market remained soft.
 Market wacthers generally expected the government to fetch
HK$10.9 billion ($1.4 billion) from the sale of two plots of land
in the New Territories, about 50 percent above the offer prices
with keen keen competition expected among developers.
 The benchmark Hang Seng Index .HSI ended up 1.12 percent or
236.7 points at 21,328.74 in subdued trade with investors staying
away on concern over capital outflows and further measures from
the Chinese authorities to curb assets bubbles.
 Chinese banks also firmed. China Construction Bank 0939.HK
rose 1.56 percent, Bank of China 3988.HK gained 2.2 percent,
and ICBC 1398.HK advanced 1.59 percent. Index heavyweight HSBC
0005.HK finished up 0.75 percent.
 Market debutant China Pacific Insurance (Group) Co 2601.HK,
China's third-largest life insurer, topped the most heavily
traded list as it struggled to hold above its issue price
following a $3.1 billion IPO -- the world's seventh-largest IPO
this year. [ID:nTOE5BM01X]
 The insurer slid as to as low as HK$27.50 before closing up
0.89 percent at HK$28.25. Larger rival China Life 2628.HK
gained 1.63 percent and Ping An 2318.HK was up 0.75 percent.
 Shanghai-listed China Pacific Insurance 601601.SS edged up
0.34 percent to 23.32 yuan.
 Another new listing Huayu Expressway 1823.HK ended at
HK$1.29, up 0.8 percent from its issue price of HK$1.28.
 The China Enterprises Index .HSCE of top locally listed
mainland Chinese stocks closed up 1.45 percent at 12,528.66.
 Market turnover fell to HK$44.19 billion ($5.7 billion), from
Tuesday's HK$45.96 billion. The market will close at midday on
Thursday.
 Geely Automobile 0175.HK rose for second straight session
up 7.28 percent to HK$3.98 in its biggest single-day gain since
Nov 30.
 Ford Motor F.N and Zhejiang Geely had addressed most of the
big issues in the pending sale of Ford's Volvo car unit to the
Chinese automaker, a source with knowledge of the talks said on
Wednesday, paving the way for the biggest acquisition of a
foreign carmaker by a Chinese company. [ID:nTOE5BM03I]
 CITIC Resources 1205.HK jumped 7.11 percent to HK$2.26
after it said it had sold its direct interest in Australian miner
Macarthur Coal's MCC.AX operating assets to Macarthur for A$105
million ($92.02 million).
 Maoye International 0848.HK extended early losses to fall
21.34 percent to HK$1.99, its lowest close since Oct 8. The
Chinese department store operator said its chairman, Huang Mao
Ru, had never been investigated by the Chinese government or any
law enforcement authorities, contrary to recent media reports.
 SHANGHAI RISES ON TELECOM ISSUES
 China's key stock index rose 0.76 percent on Wednesday, with
telecommunications-related shares firmer on strong subscriber
growth, although some recently listed companies slipped below
their IPO prices with sentiment weighed down by worries over
rising share supplies.
 The Shanghai Composite Index .SSEC ended up 23.257 points
at 3,073.777, managing a modest technical rebound after closing
at the lowest level in seven weeks on Tuesday.
 Gaining Shanghai A shares outnumbered losers by 792 to 97,
while turnover sank to 91 billion yuan ($13.33 billion) from
Tuesday's already low 99 billion yuan.
 The index remained below a closely watched support level at
its 125-day moving average, now at 3,096 points, after closing
below that level on Tuesday for the first time in nearly three
months.
 "The index managed a mild technical rebound, lifted by
telecoms-related shares as the industry outlook improved," said
Cao Xuefeng, senior analyst at Western Securities in Chengdu.
"Sentiment is still fragile, but the index has support at the
psychologically and technically important 3,000-point level."
 Analysts played down any impact from comments on Tuesday by
Chinese central bank Governor Zhou Xiaochuan that monetary policy
needed to pursue multiple objectives beyond just fighting
inflation, which sparked overseas talk of a possible Chinese
interest rate rise. They stressed that the country's economic
recovery remained at an early stage.
 Telecommunications shares were strong for a second day, with
industry heavyweight China United Network Communications
600050.SS, the second-most active stock in Shanghai, jumping
2.32 percent to 7.05 yuan.
 The official China Securities Journal reported that the
number of mobile phone users in China had risen 17.3 percent from
a year earlier to 717 million, according to the latest data for
November, while the number of users of China Unicom's
third-generation (3G) technology had surpassed its 2G users.
 Metallurgical Corp of China 601618.SS, the most active
Shanghai stock, fell below its IPO price of 5.42 yuan for the
first time since listing on Sept. 21. It ended 4.04 percent lower
at 5.22 yuan.
 China Shipbuilding Industry 601989.SS, which listed in
Shanghai last Wednesday, rebounded 1.34 percent to 7.54 yuan
after slipping to 7.34 yuan, below its IPO price of 7.38 yuan.
 The property sector steadied after a recent fall, with the
Shanghai property sub-index .SSEP edging up 0.06 percent after
sinking 3.42 percent on Tuesday. Sector heavyweight China Vanke
000002.SZ rose 0.29 percent to 10.33 yuan.
 The authorities have been seeking to cool potential price
bubbles in the property and stock markets by tightening rules on
real estate transactions and stepping up approvals of new share
issues.
 (Editing by Chris Lewis)































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