China shares rise on strength in blue-chip shares, HK weak
* HSI -0.1 pct, H-shares -0.4 pct, CSI300 +0.6 pct
* Institutional investors buy into undervalued blue-chip shares
* Merger and acquisitions plans of SOEs attract funds
* Hong Kong shares fall on profit-taking, but see resistance
By Chen Yixin and Pete Sweeney
SHANGHAI, Nov 3 (Reuters) - China shares hit a multi-month high on Monday, supported by sustained strength in blue-chip brokerages and steel firms, while Hong Kong markets fell as profit-taking emerged after the recent solid gains.
The Shanghai Composite Index rose 0.6 percent to 2,435.0 points by the midday break, the highest level since February last year, while the CSI300 of the leading Shanghai and Shenzhen A-share listings gained 0.6 percent, hitting a 14-month high.
"I can see some institutional investors start to buy into undervalued blue-chips, including brokerages and steel shares, given supportive government policies and merger and acquisitions among stated-own enterprises," said Xiao Shijun, analyst at Guodu Securities in Beijing.
Guangzhou Shipyard International Ltd soared its 10 percent daily limit in the mainland market and 58.8 percent in the Hong Kong market as the company said on Friday that it would buy Huangpu Wenchong yard, which builds military and marine engineering vessels, from its parent China State Shipbuilding Corp for 4.53 billion yuan ($741 million) via share issuance and cash. Continuación...