Hong Kong shares set for best month in 2014, China edges up
* HSI +0.2 pct, H-shares +0.5 pct, CSI300 +0.1 pct
* China property weaker due to correction from recent gains
* Cheung Kong at 6-year high helped by drop in U.S. bond yields
* HK, China shut on Monday for Dragon Boat Festival (Updates to midday)
By Grace Li
HONG KONG, May 30 (Reuters) - Hong Kong shares are set to end their best month this year on Friday, underpinned by strength in property developers and Chinese banks.
China shares reversed earlier losses in late morning trade, even as the property sector remained a drag.
Hong Kong and mainland benchmark indexes are still down on the year, with markets awaiting China's official manufacturing purchasing managers' index for May due on Sunday, which is likely to have inched up to 50.6 in May from April's 50.4, according to a Reuters poll.
"Hong Kong market is still very cautious, trading on good news that Wall Street still broke the record. However, A-shares are not moving, holding back the Hong Kong market," said Jackson Wong, vice-president of Tanrich Securities, adding that investors tend to take profits before the holiday. Continuación...