* Main indexes up, financial shares underpin
* Some investors take profit in early trade
* Hong Kong index down, pressured by possible U.S. rate hike
SHANGHAI, Nov 10 (Reuters) - China stocks recouped early losses and turned modestly higher by midday on Tuesday, led by a rebound in financials that had underpinned last week’s broad market rally.
The CSI300 index rose 0.7 percent, to 3,868.87 points by midday, while the Shanghai Composite Index gained 0.4 percent, to 3,662.36 points.
Shares of Chinese securities brokerages extended a rally from last week after a brief correction in early trade, while investors also lapped up comments from policy makers around broader financial reforms and economic growth.
“I saw the securities in a strengthening trend of late, and the technical correction intraday was normal and temporary,” said Zhang Yanbing, an analyst at Zhenshang Securities in Shanghai, referring to early market action before the rebound.
China will deliver a slew of economic and financial reforms over the next five years and strengthen supervision of its financial system to prevent “systemic risk”, governor Zhou Xiaochuan said.
The authorities are confident of achieving economic growth of around 7 percent in 2015, Vice Finance Minister Zhu Guangyao told a press conference.
The financial services surged 1.9 percent, with a host of securities firms including Fouder Securities and Industrial Securities jumping by a daily limit of 10 percent by the midday break.
Shenzhen’s start-up board ChiNext rose 0.9 percent to 3,102.245. The CSI300 Telecommunication Services Index fell the most, down 1.4 percent.
Hong Kong stocks slipped in tandem with lower regional share markets, which were shackled by concerns of higher borrowing costs in the United States and slackening global growth.
The Hang Seng index dropped 1.2 percent, to 22,456.45 points.
The Hong Kong China Enterprises Index lost 1.2 percent, to 10,380.17.
Reporting by the Shanghai Newsroom, Ruby Lian and Pete Sweeney; Editing by Shri Navaratnam