China shares up despite weak PMI, Hong Kong at one-week high
* HSI +1.1 pct, H-shares +2 pct, CSI300 +0.4 pct
* China finance and insurance strong on preferred share policy
* Hong Kong at one-week high on short-covering
* Hutchison falls on Temasek deal (Updates to midday)
By Alice Woodhouse and Natalie Thomas
HONG KONG/SHANGHAI, March 24 (Reuters) - Shares in Hong Kong and China shares rose on Monday as a weak factory survey heightened expectations that Beijing will have to unveil stimulus measures soon to avert a sharper downturn in the world's second-largest economy.
China's factory activity contacted for the third month in a row in March, falling to an eight-month low of 48.1 from February's final reading of 48.5, the flash Markit/HSBC Purchasing Managers' index showed.
By midday, the Hang Seng Index was up 1.1 percent at 21,673.21 points, its highest since March 13. The China Enterprises Index of the top Chinese listings in Hong Kong rose 2 percent to its highest since March 7.
The CSI300 of the leading Shanghai and Shenzhen A-share listings rose 0.4 percent, while the Shanghai Composite Index was up 0.5 percent at 2,057.70 points. Continuación...