China stocks rise as weak PMI data reinforces stimulus hopes; HK down
* CSI300 +0.9 pct; SSEC +1.1 pect; HSI -0.9 pct
* Weak PMI data reinforces expectation of government stimulus
* China stock investors increase leveraged bets this week
SHANGHAI, July 24 (Reuters) - China stocks extended their recovery on Friday morning, with the Shanghai market heading for its seventh-day gain -- its longest winning streak in two months -- as investors increased leveraged bets despite disappointing July factory activity data.
But Hong Kong stocks fell, following sluggish overseas markets, and amid investor concerns over China's economy.
A preliminary private survey showed that China's factory sector contracted by the most in 15 months in July as shrinking orders depressed output. But investors expected the weak showing to prod Beijing into rolling out more stimulus measures.
"We think that recent policy easing has yet to fully feed through into stronger economic activity and expect policymakers to respond to signs of weakness by stepping up support in order to prevent growth from slipping much further this year," Capital Economics wrote in a report.
Hu Jiani, analyst at Cinda Securities, said there was a strong expectation that the government will accelerate infrastructure investment later in the year, and will soon launch the third batch in a local government debt-to-bond swap scheme aimed at aiding the economy.
The CSI300 index rose 0.9 percent, to 4,288.11 points at the end of the morning session, having rebounded over 3 percent this week. Continuación...