China share index propped up by banks, property; Hong Kong sags
* CSI300 +0.4 pct; SSEC +0.6 pct; HSI -0.3 pct
* Some funds locked up in IPOs being returned to investors
* Vanke jumps to fresh 8-year highs
SHANGHAI, Dec 3 (Reuters) - China stocks held steady on Thursday morning, underpinned by banking and property shares, as some of the roughly 2 trillion yuan ($312.7 billion) locked up in Tuesday's initial public offerings starts to flow back to the market.
But Hong Kong stocks weakened, with investors stepping back to assess the effects of diverging global monetary policies. The European central bank is widely expected to announce more quantitative easing this week, while the U.S. Federal Reserve will likely raise rates later this month.
The CSI300 index rose 0.4 percent to 3,735.93 points at the end of the morning session, while the Shanghai Composite Index gained 0.6 percent, to 3,557.71 points.
The market witnessed another day of strong performance in banking and property stocks, with investors ignoring weak August service activity data.
Shenzhen's start-up board ChiNext also recovered much of Wednesday's losses, as some of the money locked up in IPOs are being returned to investors. Continuación...