China, Hong Kong stocks rise on state firm merger hopes
* CSI300 +1.2 pct; SSEC: +1.9 pct; HSI: +1.3 pct
* SOEs, including Sinopec and PetrChina surge on merger hopes
By Samuel Shen and Kazunori Takada
SHANGHAI, April 27 (Reuters) - Stocks in China and Hong Kong rose to fresh seven-year highs on Monday morning, led by heavyweight Chinese state-owned enterprises (SOEs) on expectations that Beijing will accelerate mergers in the underperforming sector.
Investors brushed aside concerns over the accelerated pace of initial public offerings (IPOs) and data showing weak earnings for industrial firms.
"We don't see a slowdown in money inflows, so more liquidity will likely push stock indexes higher," wrote Sun Jianbo, strategist of Galaxy Securities Co.
"Stepped-up IPO approvals won't change the market's upward trend."
The CSI300 index rose 1.2 percent to 4752.026 points at the end of the morning session, while the Shanghai Composite Index gained 1.9 percent at 4475.686 points.
The Hang Seng index was up 1.3 percent, at 28426.72 points, while the Hong Kong China Enterprises Index rose 0.9 percent to 14619.91 points. Continuación...