China stocks rise on reports of pilot programme, Hong Kong up too
* HSI +0.5 pct, H-shares +1.4 pct, CSI300 +1.4 pct
* China banks boosted by reports on preferred share pilot
* Country Garden falls 6.5 percent on broker downgrade
By Alice Woodhouse and Chen Yixin
HONG KONG/SHANGHAI, March 13 (Reuters) - Chinese stocks rose on Thursday, pulling up Hong Kong's market, led by banking counters that could be the first ones joining an anticipated preferred shares pilot programme in the mainland.
Three sources with knowledge of the plans told Reuters that the China Securities Regulatory Commission is ready to launch the long-awaited pilot programme allowing listed companies to issue preferred shares, and could announce it as policy as soon as this weekend.
At midday, the Hang Seng Index was up 0.5 percent at 21,999.79 points. The China Enterprises Index of the top Chinese listings in Hong Kong rose 1.4 percent.
The CSI300 of the largest Shanghai and Shenzhen A-share listings also climbed 1.4 percent, while the Shanghai Composite Index moved above 2,000 points by rising 1.3 percent to 2,022.96 points.
In Hong Kong, shares saw "just a slight recovery from their low," said Alex Wong, a director at Ample Finance Group. "Preferred shares can only solve a little bit of capital worry but it cannot solve the worries such as debt quality and interest margin (among Chinese banks) in the long run." Continuación...