China, HK stocks rise, but off opening highs, after c.bank easing
* CSI +1.4 pct; SSEC +1.0 pct; HSI +0.6 pct
* Pares some gains after opening up more than 2 pct
* PBOC easing had been widely expected
By Sue-Lin Wong
SHANGHAI, Feb 5 (Reuters) - China stocks shot up more than 2 percent on Thursday after the central bank eased policy in an attempt to combat an economic slowdown and ward off deflation, but profit taking pared gains by midday.
The move by the People's Bank of China to cut reserve ratio requirements (RRR) for banks had been widely expected before the long Lunar New Year holidays in mid-February, helping fuel a stock market rally of around 40 percent in the last few months.
The CSI300 index ended the morning session up 1.4 percent at 3,449.57 points, after surging 2.5 percent at the open, while the Shanghai Composite Index was up 1.0 percent at 3,205.55 points, after opening up 2.4 percent.
"The strong opening was expected but the subsequent retreat during morning trading indicates that investors are cautious." said Li Zheming, an analyst at Datong Securities in Dalian.
"The PBOC would need to continue rolling out easing policies throughout Q1 and Q2, for example more interest rate and RRR cuts, for the stock market to react positively in the longer term." Continuación...