* CSI300 +0.3 pct; SSEC +0.4 pct; HSI 0.6 pct
* Shenzhen property market shows signs of recovery - paper
* Hong Kong to introduce Volatility Control Mechanism
By Samuel Shen and Pete Sweeney
SHANGHAI, June 12 (Reuters) - China stocks rose slightly on Friday morning, with property shares firmer on signs of a renewal in the country's sluggish real estate market, but overall sentiment was cautious before a fresh wave of IPOs next week.
Next week, 25 companies will launch initial public offerings, which analysts estimate could lock up 5.5 trillion yuan ($886.20 billion) of liquidity.
The property sector was underpinned by official data pointing to an improvement in real estate investment and home sales in China, with the recovery most obvious in major cities.
Several banks in the southern Chinese boom town of Shenzhen increased mortgage rates after the city's property market turned up in the wake of stimulus policies unveiled by Beijing in late March, local newspaper reported on Friday.
The brighter outlook in property offers some relief to investors who this week were confronted by a slew of weak data showing the economy is still struggling.
"China will continue to loosen monetary policies, because there's no other way out," said Hong Hao, chief strategist at Bank of Communications International.
"The uptrend of the market is not changed, despite rising volatility," he said, predicting China will reduce banks' reserve requirement ratios "in a matter of weeks".
The CSI300 index rose 0.3 percent, to 5,319.97 points at the end of the morning session, while the Shanghai Composite Index gained 0.4 percent, to 5,144.04 points.
Shenzhen's growth board ChiNext rose 1.2 percent, continuing its rebound as some investors felt last week's correction was excessive.
Investors were encouraged by a slew of companies that forecast good performance ahead of the earnings seasons.
Around 60 percent of the 1,024 Chinese companies that have so far published performance forecast said they expect a profit.
Among them, 149 companies forecast a profit rise of more than 50 percent and 102 firms predict their profits would double, according to local media reports.
Hong Kong stocks were also firmer on Friday. The Hang Seng index added 0.7 percent, while the Hong Kong China Enterprises Index gained 0.9 percent.
Hong Kong Exchanges and Clearing chief executive Charles Li said on Thursday a new mechanism aimed at reducing volatility could be introduced next year, local newspaper The Standard reported. bit.ly/1Gx86GD
The Volatility Control Mechanism covers 81 constituent stocks of the Hang Seng Index and the Hang Seng China Enterprises Index.
Analysts attributed the measures to recent wild swings in some Hong Kong-listed shares, such as Chinese solar power company Hanergy.
$1 = 6.2063 Chinese yuan Editing by Jacqueline Wong