* HSI +0.6 pct, H-shares +0.8 pct, CSI300 +2.1 pct
* Chinese developers jump on reported easing in home
* Investors rotating from HK to Chinese developers: traders
* Construction, A-share proxy plays strong
By Clement Tan
HONG KONG, Nov 1 (Reuters) - Mainland Chinese shares lifted
Hong Kong markets with their best daily performance in nearly a
month on Thursday, boosted by stronger Chinese economic data and
a report that more city governments were easing restrictions on
the real estate sector.
The state-run China Securities Journal reported on Thursday
that as many as six Chinese cities have made it easier to obtain
funds for home purchases which will, in turn, bolster land
sales, a major revenue source for local governments.
The Hang Seng Index went into the midday trading
break 0.6 percent higher at 21,772.6, just shy of the year's
intra-day highs of 21,847.7. The China Enterprises Index
of the top Chinese listings in Hong Kong rose 0.8 percent.
The CSI300 Index of the top Shanghai and Shenzhen
listings jumped 2.1 percent, while the Shanghai Composite Index
climbed 1.8 percent. Both indices are set for their
respective best daily performance since October 9, outshining
Asian peers on the day.
"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 surveys for October on
Thursday suggest 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 moved back into expansionary
Shanghai-listed Poly Real Estate, among China's
largest developers by sales, jumped 5.6 percent to its highest
level since July. The Shanghai property sub-index was a
standout outperformer among sectors, rising almost 4 percent.
China Vanke jumped 3.5 percent in Shenzhen.
In Hong Kong, traders said some investors were rotating out
of Hong Kong developers and into Chinese developers, with the
worst seemingly over for the latter and some major Chinese
developers reported positive third-quarter earnings.
On the other hand, some investors expect more policy curbs
in Hong Kong could be in store because of greater capital
China Overseas Land & Investment reversed early
losses to go into the midday break up 1.2 percent. China
Resources Land was up 1.4 percent.
Hong Kong developers Cheung Kong Holdings was up
0.5 percent, while Henderson Land edged up 0.6 percent
-- both recovering from steep losses earlier this week after
Hong Kong announced late last Friday demand-side home purchase
curbs on the sector aimed at reducing foreign demand.
CHINA CYCLICALS, A-SHARE PROXY PLAYS HIGHER TOO
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.
Anhui Conch Cement jumped 4.5 percent
in Hong Kong and 3.4 percent in Shanghai, both in strong
volumes. China National Building Material soared 4.9
percent in Hong Kong to a six-month high.
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 percent in
Hong Kong and 4.3 percent in Shanghai. Citic Securities
rose 2.6 percent in Hong Kong and 2.2
percent in Shanghai.