* HSI +0.9 pct, H-shares +1.9 pct, CSI300 +2.7 pct
* Short selling interest in HK exceed 13 pct of turnover
* China property up again after more clarity on curbs
* Country Garden jumps after strong 2013 sales guidance
By Clement Tan
HONG KONG, March 20 (Reuters) - China shares were headed for
their best daily showing in two weeks on Wednesday, led by gains
for real estate stocks as more clarity about fresh property
curbs eased investor uncertainty and helped buoy the Hong Kong
The CSI300 of the leading Shanghai and Shenzhen
A-share listings went into the midday trading break up 2.7
percent. The Shanghai Composite Index climbed 2.1
percent. If the gains hold to the close, it would mark their
best rise since March 5.
The Hang Seng Index rose 0.9 percent, while the China
Enterprises Index of the top Chinese listings in Hong
Kong was up 1.9 percent. If gains hold, this will the first gain
in three days for both indexes.
China Vanke jumped 3.7 percent in Shenzhen as
the cloud over policy prescription against speculation on the
Chinese property sector cleared further.
A report in the 21st Century Business Herald detailing
Beijing city's plan to adapt more curbs first announced by the
central government earlier this month eased uncertainty for
investors as it provided more clarity about the specific
The report said the curbs may include a differential capital
gains tax rate based on the length of time of property ownership
and closing a loophole that help divorcing couples evade the tax
on second homes. Single residents may also be restricted to one
home, the newspaper added.
Chinese property developer Country Garden jumped
almost 7 percent in Hong Kong after the company said it has
already achieved 20 percent of its 2013 sales target, which is
30 percent higher than its 2012's. Chinese brokerage CICC
upgraded its rating from "hold" to "accumulate" and raised
target price by 7 percent.
Traders said midday gains in China came amid exceptionally
high short selling interest, which accounted for 13.6 percent of
total turnover at midday - above the 8 percent historical
"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 a private preliminary
survey of manufacturing activity in March in China due for
release on Thursday.
Mid-sized Chinese banks were among the biggest contributors
to the benchmark's uptick after a separate report in the 21st
Century Business Herald said the China Banking Regulatory
Commission is considering scrapping a deposit target for banks
that could free up more capital.
China Minsheng Bank jumped 5 percent in
Shanghai to its highest in more than a month.
Its Hong Kong shares spiked 5.7 percent, extending gains on
the year to 19.4 percent, compared to the 1.9 percent slide on
the China Enterprises Index. But short selling in the stock
accounted for 18.5 percent of its total turnover at midday.