(Corrects sourcing in paragraph 2 to local media reports)
* CSI300 +2 pct; SSEC +2.4 pct
* Property sector supported by new mortgage policies
* HSI +0.5 pct; HSCE +1.0 pct
By Chen Yixin and Kazunori Takada
SHANGHAI, Jan 5 (Reuters) - China stocks rose to their highest in five years on Monday led by a jump in the property sector as investors welcomed mortgage-policy changes in Beijing and Guangzhou designed to help the troubled sector.
Beijing Housing Provident Fund Management Centre, a local government agency that provides housing loans, said on Sunday that it had raised the upper limit on the loan cap for property, effective this month. Other local governments, including Guangzhou, have taken steps to help home buyers, according to local media reports.
The CSI300 index rose 2.0 percent to 3,603.95 points at the end of the morning session, while the Shanghai Composite Index gained 2.4 percent to 3,312.82 points. Both indices hit their highest level since December 2009.
“Investors are still bargain-hunting for blue-chips and the news of mortgage policy also lifted the property sector,” said Xiao Shijun, an analyst at Guodu Securities in Beijing.
The sub-index of property jumped 3.8 percent.
Shares related to coal also outperformed, which analysts attributed to cheap valuations. More than 10 coal mining companies, including Shanxi Xishan Coal and Electricity Power , Yongzhou Coal Mining company and Datong Coal Industry Co, jumped by their 10 percent daily limit.
Hong Kong shares edged up, lifted by financials.
The Hang Seng index added 0.5 percent, to 23,976.04 points. The Hong Kong China Enterprises Index gained 1.0 percent, to 12,365.28.
“If A-shares continue to rise the rest of the day, more Hong Kong investors will chase up the gains ... the momentum will become stronger as Hong Kong shares are trading at discounted prices compared to their A-share listings,” said Patrick Yiu, a director at CASH Asset Management in Hong Kong.
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 127.35.
A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.
Shares of Melco Crown Entertainment Ltd fell 3.6 percent after the casino operator on Friday announced a plan to withdraw its listing in Hong Kong. GRAPHICS
New A-share account openings: bit.ly/1wvJ9S9 (Additional reporting by the Shanghai Newsroom; Editing by Richard Borsuk)