* HSI +1.4 pct, H-shares +1.8 pct, CSI300 +1.2 pct
* China transport stocks lead gains in the mainland
* Hong Kong gambling shares up after Wynn Macau earnings
HONG KONG, Oct 29 (Reuters) - China and Hong Kong shares rose more than 1 percent on Wednesday, heading for a second straight day of gains, on hopes of more favourable policies from the Chinese government, with tranportation stocks leading gains for mainland equities.
At midday, the Shanghai Composite Index was up 1.4 percent to the highest level in two weeks, 2,370.1 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings gained 1.2 percent.
In Hong Kong, the Hang Seng Index advanced 1.4 percent to 23,839.22 points, its highest level in more than a month. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 1.8 percent.
China markets are "back on an uptrend track after consolidating the previous gains," said Zhang Yanbin, an analyst at Zheshang Securities in Shanghai. "The market is betting on further policy support from the government."
"For example, investors are waiting for more stimulus measures from the central bank to support the market in the fourth quarter," Zhang said, adding that a government pledge to promote rule-of-law should "generate dividends in the longer term."
Transportation-related stocks led gains on the mainland. China Eastern Airlines Corp Ltd and COSCO Shipping Co Ltd both climbed 9.9 percent, while China Shipping Development Co Ltd shot up by the 10 percent daily limit.
Hong Kong shares tracked strength in the China market, with casino stocks leading the rise after Wynn Macau posted better-than-expected quarterly earnings, fuelling hopes that the gambling market has stabilised.
Also providing a boost was anticipation the U.S. Federal Reserve would reinforce its willingness to wait a long while before hiking interest rates at a meeting later on Wednesday.
"Longer term view of the market is improving on the unlikelihood that there will be changes in the U.S. interest rate hike prospect," said Steven Leung, a director at UOB Kay Hian in Hong Kong. "Signs of stablising in the gaming market and solid earnings of life insurers dominated the buying interest."
Wynn Macau rose 4.1 percent to its highest in seven weeks. Galaxy Entertainment climbed 6.3 percent and Sands China surged 4.8 percent.
Shares of Ping An Insurance rose 2.9 percent in Hong Kong after China's second-largest insurer by market capitalisation reported third-quarter profit almost doubled. China Life rose 2.5 percent. (Reporting by Donny Kwok; Additional reporting by Shanghai Newroom; Editing by Richard Borsuk)