China shares rebound in volatile trade; HK flat
* CSI300 +1.3 pct; SSEC +1.0 pct; HSI flat
* Market volatile ahead of settlement in futures contracts
* Hundsun slump amid probe into grey-market margin financing
SHANGHAI, July 16 (Reuters) - China stocks rebounded Thursday morning after another bout of volatility in the session, as investors remain wary of further corrections even as a flurry of support measures from Beijing have managed to restore some calm.
Investors were also keeping a close watch on the futures markets where some traders appear to be betting on more falls for mainland stocks, which lost a third of its value in the recent month-long rout.
After moving in and out of negative territory, the CSI300 index rose 1.3 percent, to 4,019.88 points at the close of morning trade, while the Shanghai Composite Index gained 1.0 percent, to 3,843.35 points.
Following the previous session's slump, index futures for July delivery rose sharply ahead of Friday's settlement.
Index futures, which offer investors a tool to hedge risks and make directional bets, are being closely watched by investors as a gauge of market sentiment.
Stocks are typically more volatile just before the monthly settlement day for futures contracts, as futures speculators would seek to move spot prices in their favour to avoid a loss, analysts say. Continuación...