China stocks extend recovery despite crackdown on margin loans; HK also up
* CSI300 +2.2 pct; SSEC +2.3 pct; HSI +0.2 pct
* Regulator launches fresh crackdown on grey-market margin loans
* Market may consolidate over the next 5-8 weeks-analyst
SHANGHAI, July 13 (Reuters) - China stocks extended their recovery on Monday morning, raising hopes that measures taken by Beijing to prevent a full-blown market crash have worked, although renewed interest in leveraged bets has led to fresh regulatory crackdown on margin lending.
The Shanghai Composite Index gained 2.3 percent by midday, having bounced 18 percent from a four-month low hit last Thursday.
The index is still down 23 percent from its June 15 peak.
At 3,966.13 points, the Shanghai index is mid-way between the bottom and a perceived ceiling of 4,500 points, a level under which a government-backed bailout fund, formed by 21 brokerages, promised not to sell.
The CSI300 index rose 2.2 percent, to 4,198.36 points.
"This is victory in the first battles of a long-lasting war," said Hou Yingmin, analyst at brokerage Aj Securities. Continuación...