* HSI +1.0 pct, H-shares +2.4 pct, CSI300 +3.4 pct
* Chinese property bolstered by more details on new curbs
* Country Garden in best gain in 14 mths on 2013 guidance
* China autos jump, govt seen buying more local cars
By Clement Tan
HONG KONG, March 20 (Reuters) - China shares jumped on their
best day in more than two months on Wednesday, led by gains for
the financial and real estate sectors as more clarity about
fresh property curbs eased investor uncertainty and helped buoy
the Hong Kong market.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings spiked 3.4 percent, while the Shanghai
Composite Index rose 2.7 percent. It was their best day
since Jan. 14.
The Hang Seng Index gained 1 percent, while the China
Enterprises Index of the top Chinese listings in Hong
Kong climbed 2.4 percent. For both, this was their first gain in
Gains in Shanghai came in volume that was the highest in two
weeks, but almost 22 percent less than a Feb. 4 peak. Hong Kong
turnover improved from Tuesday's low but stayed relatively
modest as short selling interest hit 12.2 percent, far above the
historical 8 percent average.
"This rebound could go on for the rest of the week, but
let's not get too excited because nothing fundamentally has
changed yet," said Hong Hao, chief equity strategist for Bank of
Communication International Securities.
"Tomorrow's flash PMI should come in better than February's
number and could improve sentiment if it points to a better
recovery pace," Hong added, referring to the HSBC preliminary
survey of manufacturing activity in March in China due for
release on Thursday.
On Wednesday, Chinese property developers broadly moved up
after the 21st Century Business Herald newspaper detailed
Beijing city's plan to adapt more home sales curbs, which was
announced by the central government this month.
The report said the curbs may include different capital
gains tax rate based on the duration of property ownership and
closing a loophole that helps divorcing couples evade the tax on
second homes. Single residents may also be restricted to one
home, the newspaper added.
This eased uncertainty for investors as it provided more
clarity about the specific measures. Chinese property-related
stocks have been caught in a jittery spell since the central
government announced guidance for more curbs in early March, but
left local governments to customize guidelines for their cities
China Vanke climbed 2.5 percent in Shenzhen,
while Poly Real Estate jumped 4.2 percent in
Shanghai. China Resources Land rose 4 percent in Hong
Kong, trimming losses on the year to 1.9 percent.
Chinese developer Country Garden surged 9.4
percent in its best daily gain in 14 months, helped by the
company's aggressive guidance for 2013. Its 2012 full year
earnings, posted on Tuesday, beat expectations.
Country Garden expects sales contracts to be 30 percent
higher than last year, by value, and said it has already
achieved 20 percent of the higher target. Chinese brokerage CICC
upgraded its rating from "hold" to "accumulate" and raised
Country Garden's target price by 7 percent.
BANKS, AUTOS SURGE
Chinese banks, particularly mid-sized players, also saw
strong gains after the same Chinese newspaper reported that the
mainland banking regulator may change the way loan-to-deposit
ratios are computed for small and mid-sized lenders, helping
them optimise asset allocation and better manage risks.
Belief that the changes could free up capital for loans sent
shares of China Minsheng Bank soaring 6.7
percent in Shanghai and 5.7 percent in Hong Kong. Citic Bank
spiked by the maximum allowed 10 percent in
Shanghai and 5 percent in Hong Kong.
Chinese automakers were also bolstered by an official Xinhua
news report that some 10 provinces and other government entities
have placed orders for FAW Group's Hongqi H7 cars
after the Jilin provincial government ordered some in February.
FAW's Shenzhen shares were up by the maximum 10 percent, as
were the Shanghai listings of rivals Great Wall Motor
and Guangzhou Automobile Group after the
same report said top overseas models are increasingly overlooked
for vehicle-purchases by government agencies.