* HSI +1.9 pct, H-shares +2 pct, CSI300 +0.1 pct
* Hong Kong rises on upbeat China PMI
* Index heavyweights drag China shares lower
* Kweichow Moutai drops most in nearly five years after weak
* Everbright Securities, in resumed trading, drops 10 pct
By Yimou Lee
HONG KONG, Sept 2 (Reuters) - Hong Kong shares looked set
for their best day in three weeks on Monday, buoyed by upbeat
China factory activity data that raised hopes the world's
second-largest economy was on a firmer footing.
But Chinese shares were mixed, as gains in cyclical sectors
were offset by plunges in index heavyweights such as premium
liquor producer Kweichow Moutai Co Ltd and
At 0338 GMT, the Hang Seng Index was up 1.9 percent
at 22,141.14 points, a two-week high. The China Enterprises
Index of the top Chinese listings in Hong Kong rose 2
The CSI300 rose 0.1 percent, while the Shanghai
Composite Index was down 0.1 percent at 2,095.73 points.
"Not only did the HSBC and official PMI figures show signs
of economic recovery, but there was also a strong rebound in
listed companies' earnings in the second quarter," said Cao
Xuefeng, head of research at Huaxi Securities in Chengdu.
"If the liquidity condition also improved, these will
provide some supports and we will see an upward trend for the
The final Markit/HSBC Purchasing Managers' Index (PMI)
climbed to 50.1 in August, up sharply from July's 47.7 and in
line with last week's flash preliminary reading.
The survey came a day after China's official manufacturing
PMI showed factory activity expanded at the fastest pace in more
than a year in August with a jump in new orders.
Shares in China Railway Construction Corporation Ltd
rose 4.6 percent in Hong Kong and 2.6
percent in Shanghai after its first half net profit rose 46.6
China Railway Group Ltd gained 2.8
percent in Hong Kong and 1.1 percent in Shanghai after its first
half net profit jumped 45.9 percent.
Chinese liquor makers sank after industry leader Kweichow
Moutai reported its smallest first-half net profit since its
listing as Beijing's ongoing crackdown on lavish spending and
corruption took its toll.
Kweichow Moutai fell 9.4 percent and looked set for its
worst daily percentage loss in almost five years, while smaller
rival Wuliangye Yibin Co Ltd dropped 4.5 percent to
its lowest since June 2009.
Shares in China's Everbright Securities plunged
10 percent in Shanghai, the maximum permitted daily change, as
trading resumed on Monday after the brokerage announced the
resignation of two senior executives.
The company has fallen more than 25 percent since Aug.t 16,
when a glitch in the brokerage's computer system caused an
unintended placement of buy orders to the exchange and led to a
massive but short-lived jump in the Shanghai Composite Index