China blue-chips jump as investors switch out of small caps; Hong Kong edges up
* CSI300 +1.4 pct; SSEC +0.4 pct; HSI +0.3 pct
* Investors rotate from small caps to blue chips
* Property shares jump for second day on policy support hopes
SHANGHAI, Dec 2 (Reuters) - China shares climbed on Wednesday as investors rotated out of small caps and into blue chips, and as speculation swirled that Beijing will announce more incentives to stimulate the property market.
Hong Kong stocks also rose, but more modestly, as downbeat U.S. manufacturing data raised questions about the U.S. economy and the pace of expected interest rate rises by the Federal Reserve.
In China, the CSI300 index rose 1.4 percent to 3,640.19 points by the lunch break, while the Shanghai Composite Index gained 0.4 percent to 3,468.32.
Money apparently flowed out of more speculative small-caps and into blue-chips, with a 2.9 percent plunge in Shenzhen's start-up board ChiNext, and a simultaneous surge in banking and real estate stocks.
Property giants such as China Vanke Co and Poly Real Estate Group Co jumped for the second day, on market talks that China will unveil tax incentives to encourage more home purchases.
The sector was also aided by expectations that China's home prices would rise slightly in the coming year on the back of Beijing's support, thus relieving some pressure on the slowing economy. Continuación...