China stock indexes flat; small caps lend support
* Two main indexes flat midday after opening more than 1 pct lower
* Small-caps rally, underpinned by solid earnings
* China arrests executives for irregular futures trading
SHANGHAI, Nov 2 (Reuters) - China stocks were flat on Monday, with a rally in small-cap shares helping to offset concerns about China's weak economy and the government's crackdown on illegal futures trading.
The two main indexes, CSI300 index and the Shanghai Composite Index, were little changed, at 3,534.97 and 3,381.82 points, respectively, after falling by more than 1 percent at market open.
The start-up board ChiNext rose 1.2 percent. The index has now rebounded about 40 percent from its mid-September low.
"The trading in ChiNext was active after small companies reported relatively good third-quarter performance, albeit valuations are high...the ChiNext might have capped the losses," said Du Changchun, an analyst at Northeast Securities in Shanghai.
China and Hong Kong stock markets were pressured by fears that the Chinese economy may still be losing momentum in the fourth quarter despite a raft of stimulus measures.
China's manufacturing sector unexpectedly contracted in October for a third straight month, an official survey showed on Sunday, while a private factory survey on Monday also showed activity fell for an eight consecutive month in October. Continuación...