* CSI300 +0.4 pct; SSEC +0.2 pct; HSI -0.9 pct
* China will not have a hard landing - President Xi
* Chinese airlines rise on merger expectations
SHANGHAI, Oct 22 (Reuters) - China stocks rose on Thursday morning, with the previous session’s roughly 3 percent plunge seen as creating a buying opportunity for some investors who missed the recent rebound.
But Hong Kong stocks fell after that market reopened following Wednesday’s public holiday.
China’s CSI300 index was up 0.4 percent to 3,488.46 points by lunch time, while the Shanghai Composite Index gained 0.2 percent, to 3,328.49 points.
Investors unnerved by recent weak economic data got some solace on Wednesday from President Xi Jinping, who said during his state visit to Britain “there will be no hand landing” in China, whose economy “will maintain its strong momentum”.
Bosera Asset Management attributed the market’s Wednesday slump to profit-taking after a more than 30 percent rally since mid-September, but expected that the depth and duration of the correction could be limited.
“After the correction, investors can still hunt for stocks that are likely to benefit from China’s economic restructuring,” the Shenzhen-based fund manager said in an email.
Some hedge fund managers also said the chances of further sharp falls in the main indexes are small, while any major corrections could create opportunities for traders.
Most sectors were firmer on Thursday, though the banking subindex - which on Wednesday helped ease the market’s slide - lost 1.6 percent.
Shenzhen’s start-up board ChiNext climbed 3 percent, recovering some of Wednesday’s 6 percent tumble.
In Hong Kong, the Hang Seng index dropped 0.9 percent, to 22,777.68 points, while the Hong Kong China Enterprises Index lost 1.1 percent, to 10,534.48.
Shanghai and Hong Kong-listed shares of major Chinese carriers such as Air China and Southern Airlines jumped on merger expectations.
Shares of China mini-marts operator Wumart Stores Inc surged nearly 80 percent in Hong Kong to a four-month high after its parent Wumei Holdings offered to buy ones it doesn’t already own. (Reporting by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)