* HSI +1.4 pct, H-shares +2 pct, CSI300 +3.9 pct
* Midday Shanghai volume exceeds Tuesday full day total
* China urbanization-related sectors outperform
* Ping An Insurance jumps after HSBC finalizes stake sale
By Clement Tan
HONG KONG, Dec 5 (Reuters) - Onshore China shares jumped on
Wednesday, boosting stocks in Hong Kong, as investors cheered
comments from new Communist Party chief Xi Jinping that buoyed
hopes for an economic recovery.
Both markets outperformed other Asian bourses after Xi, in
comments ahead of the central economic planning meeting later
this month, listed tax reform, urbanization and allowing the
market to play a bigger role in setting resource prices as among
his key priorities.
The CSI300 Index of the top Shanghai and Shenzhen
listings jumped 3.9 percent, while the Shanghai Composite Index
rose 3 percent to 2,034.6, returning above the
2,000-point level for the first time since Nov. 27.
The gains helped both onshore Chinese indexes recover
further from near four-year lows touched earlier this week.
The Hang Seng Index went into the midday trading
break up 1.4 percent at 22,094.2, just below its 2012 intra-day
high of 22,162.5, set on Monday. The China Enterprises Index
of the top Chinese listings in Hong Kong climbed 2
"We are due for a short-term bounce anyway. Xi's comments
suggest he thinks the slowdown in the Chinese economy has
bottomed and inflation is not going to be a big problem," said
Hong Hao, chief equity strategist at Bank of Communications
Xi's comments on urbanization helped Chinese property and
railway stocks extend their strong gains this year. China
Railway Group climbed 2.9 percent in Hong
Kong 4.7 percent in Shanghai.
China Vanke, the country's largest developer by
turnover, jumped 4.1 percent in Shenzhen to its highest since
August after more than doubling sales in November from a year
Vanke is up 25 percent on the year, compared to the 5.6
percent decline on the CSI300.
In Hong Kong, property developer Evergrande soared
6.4 percent to its highest in almost five months, while China
Resources Land jumped 3.5 percent, bringing its gains
on the year to 67 percent.
This compares to the Hang Seng Index's 20 percent gain and
the China Enterprises Index's 8 percent rise in 2012.
Angang Steel rose 3.7 percent in Hong Kong after
Goldman Sachs upgraded its view from "sell" to "buy", expecting
the company to turn a profit in 2013 on higher growth in steel
prices than input costs as the company seeks to cut costs.
RAFT OF DEALS
The volume of trade by midday in Shanghai exceeded Tuesday's
total for the day, suggesting that domestic retail investors
could be returning to the A-share market.
Gains in the onshore market could assist new listings,
particularly with Chinese state-owned insurer PICC Group
expected to make its Hong Kong debut on Friday after
raising $3.1 billion in an offering last week that was priced
near the bottom of its range.
Still, Zhengzhou Coal Mining Machinery slipped 8.5
percent from its HK$10.38 listing price in its Hong Kong debut
on Wednesday after underwriters of the $300 million offering
were stuck in the rare position of holding unsold stock.
Shares of Ping An Insurance jumped 4.6
percent in Hong Kong and 4.2 percent in Shanghai after HSBC
Holdings said it sold its entire stake in China's
second-largest insurer to a group linked to Thailand's richest
man, Dhanin Chearavanont.
China Development Bank was a key backer of the HSBC stake
sale, which is now Asia's second-largest deal this year. The
Chinese policy bank also signed a $20 billion financing
agreement with ZTE Corp .
Shares of the world's fifth largest telecom equipment maker
rose 3.5 percent in Hong Kong and 5.1 percent in Shanghai.
Nomura analyst Huang Leping said the contract should increase
investors' confidence on ZTE to maintain steady overseas sales