* HSI +0.8 pct, H-shares +1.1 pct, CSI300 +1.9 pct
* Chinese developers jump on reported easing in home
* Investors rotating from HK to Chinese developers: trader
* CNBM leads China cement strength after Q3 earnings beat
By Clement Tan
HONG KONG, Nov 1 (Reuters) - Mainland Chinese shares posted
their strongest daily gains in more than three weeks on
Thursday, boosting Hong Kong stocks, following positive China
economic data and a report that local governments were easing
restrictions on property purchases.
Gains in both markets bucked the weaker trend in Asian
markets after the state-run China Securities Journal reported
some Chinese cities have sought to spur housing demand by making
it easier to obtain funds for buyers.
This could, in turn, support land sales, a major revenue
source for local governments.
The Hang Seng Index rose 0.8 percent to 21,821.9, a
fresh 2012 closing high. The China Enterprises Index of
the top Chinese listings in Hong Kong jumped 1.1 percent.
On the mainland, the CSI300 Index of the top
Shanghai and Shenzhen listings jumped 1.9 percent, while the
Shanghai Composite Index climbed 1.7 percent. It was the
best daily gain for both indexes since Oct. 9.
Hong Kong and mainland Chinese markets also saw increased
turnover from Wednesday, with Shanghai bourse volume jumping 41
percent from the day before to its highest in a week.
"Any signs of policy moderation in an important sector like
property is always going to help. The better PMI today is also a
factor, it gives investors confidence that the economy is
recovering," said Cao Xuefeng, head of research at Huaxi
Securities in Chengdu.
Official and private China PMI manufacturing surveys for
October on Thursday suggested China's economy is finally
regaining traction, with the final 49.5 reading for the HSBC PMI
its highest since February and the official reading moving back
into expansionary territory.
This comes as China's central bank conducted its
largest-ever net fund injection this week, signaling an
intention to keep money market conditions relatively loose to
support lending to the real economy ahead of a once-in-a-decade
political transition, starting on Nov. 8 at the 18th Party
Shanghai-listed Poly Real Estate, among China's
largest developers by sales, jumped 4.4 percent to its highest
close since mid July. The Shanghai property sub-index
was a standout outperformer among sectors, rising 3.4 percent.
China Vanke jumped 3.3 percent in Shenzhen.
In Hong Kong, traders said some investors were rotating out
of Hong Kong developers and into Chinese developers, hoping that
the worst was over for the latter after some major Chinese
developers reported positive third-quarter earnings.
On the other hand, some investors expect more property
policy curbs in Hong Kong could be in store because of greater
capital inflows. On Thursday, the territory's defacto central
bank intervened for the seventh time in two weeks to defend the
local currency's peg to the dollar.
Still, China Overseas Land & Investment reversed
early losses to end up 1.5 percent, while Evergrande
gained 2.7 percent in strong volume.
Hong Kong developers Cheung Kong Holdings and Sun
Hung Kai Properties firmed 0.4 and 0.7 percent,
respectively, continuing their recovery after steep losses
earlier this week after Hong Kong announced home purchasing
curbs on Friday aimed at reducing foreign demand.
CHINA CEMENT STRONG AFTER CNBM EARNINGS BEAT
Other growth-sensitive sectors were also stronger, on
anticipation that even a modest pick-up in the Chinese property
sector will spur demand for construction materials.
Chinese cement producers were among the top percentage
gainers on the day after China National Building Material (CNBM)
posted a smaller-than-expected 29 percent fall in
third-quarter net profit.
Shares of CNBM soared 5.1 percent to its highest close since
late April, with a few brokerages upgrading their outlook,
including Shenyin Wanguo and Jeffries. Anhui Conch Cement
jumped 4.9 percent in Hong Kong and 3.3
percent in Shanghai, both in strong volumes.
The outperformance of mainland markets also buoyed A-share
proxy plays such as Chinese insurers and brokerages, both
sectors highly vested to the onshore market.
China Life Insurance rose 2.2 percent
in Hong Kong and 4.8 percent in Shanghai. Citic Securities
rose 2.3 percent in Hong Kong and 2.8
percent in Shanghai.