* HSI +0.7 pct, H-shares +0.9 pct, CSI300 +2.4 pct
* Brokers, mid-sized banks lead A-share index gains
* Hotel IPO spin-off lifts New World Development
* BYD up on reported renewable-energy car subsidies
By Clement Tan and Yimou Lee
HONG KONG, May 3 (Reuters) - China shares were headed for
their best day in more than a week on Friday, lifting the Hong
Kong market, as investors were cheered by prospects of greater
foreign investment in mainland markets.
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings was up 2.4 percent, while the Shanghai
Composite Index rose 1.8 percent. Both are set for their
best day since April 19 and are up 2.5 and 1.6 percent this
The Hang Seng Index rose 0.7 percent after testing
its highest since March 13 earlier in the session. The China
Enterprises Index of the top Chinese listings in Hong
Kong gained 0.9 percent. On the week, they are up 1.2 and 0.8
Turnover in Hong Kong at midday was the strongest since
April 5, while Shanghai midday volume was at its highest since
The official Shanghai Securities News reported on Friday
that new technical regulations rolled out by the Chinese central
bank late on Thursday suggest that renminbi qualified foreign
institutional investors (RQFII) quota approvals may be resumed
after a two-month suspension.
"I think people are anticipating about 200 billion yuan of
unused RQFII quota could be deployed," said Jackson Wong,
Tanrich Securities' vice-president for equity sales.
CITIC Securities , China's largest
listed brokerage, climbed 3.9 percent to its highest since March
25 in Shanghai and 2.4 percent in Hong Kong. Its biggest rival,
Haitong Securities jumped 4.5 percent in Shanghai
and 2.2 percent in Hong Kong.
The People's Bank of China said that custodial institutions
have five working days, up from the current one-day arrangment,
to report transactional information relating to RQFII
investments. The central bank also said that the RQFIIs should
open offshore RMB deposit accounts, the Securities Daily
Mid-sized Chinese bank were the biggest boosts to onshore
indexes. China Minsheng Bank soared 4.1
percent in Shanghai and 3.2 percent in Hong Kong.
Hong Kong developer New World Development jumped
4.9 percent after announcing plans to spin off its hotel
properties in an initial public offering.
Warren Buffett-backed Chinese automaker BYD Co Ltd
climbed 4.4 percent in Hong Kong and 5.2
percent in Shanghai after the official Shanghai Securities News
reported that Beijing might issue subsidies for renewable-energy
cars in the first half of this year.
Power equipment makers Dongfang Electric Corp rose
6.6 percent to a one-month high, while Shanghai Electric Group
Co jumpped 3.7 percent.
The National Development and Reform Commission and several
ministries will release their urbanization development plan for
2012-2020 before the end of June, with implementation guidance
expected in the second half this year, the Shanghai Securities
News reported on Friday.
China State Construction gained 3.2
percent in Shanghai and 2.1 percent in Hong Kong. Property
developer China Vanke gained 2.3 percent in