China stocks up as regulators soothe fears of IPO flood, Hong Kong flat
* CSI300 +0.5 pct; SSEC +0.2 pct; HSI flat
* Investors welcome China's gradual approach toward IPO reform
* Property shares remain strong as Vanke hits 8-year-highs
SHANGHAI, Dec 10 (Reuters) - China shares posted modest gains on Thursday as regulators reassured investors that reforms to company listings would not open a floodgate of new offerings.
The Hong Kong market was little changed, underscoring investors' caution ahead of the Federal Reserve's policy meeting next week, which is expected to produce the first U.S. interest rate hike in nearly a decade.
China's blue-chip CSI300 index was up 0.5 percent at 3,653.69 points by the lunch break, while the Shanghai Composite Index edged up 0.2 percent to 3,479.05.
China's cabinet announced late on Wednesday that the country would shift to a registration system for initial public offerings (IPOs) within two years.
The current IPO approval mechanism is seen by many as the root of capital misallocation and corruption. The changes will allow the market, instead of regulators, to decide which firms get to list and how many shares they can sell.
But the plan has also fuelled fears that a large number of companies could rush to the stock market for fundraising simultaneously, freezing large up amounts of funds in the financial system which could in turn force up interest rates. Continuación...