China shares rise sharply on signs of fresh government support
* Shanghai Composite +4.3 pct for day, -7.9 pct for week
* CSI300 index +4.8 pct for Friday, -6.9 pct this week
* Local government pension funds seen coming in soon (Adds analyst quote, Hong Kong close, details)
By Samuel Shen and Pete Sweeney
SHANGHAI, Aug 28 (Reuters) - China stocks jumped more than 4 percent for a second straight day on Friday as signs of fresh support from Beijing prompted more bargain hunting following the earlier plunge that panicked global markets.
The mainland's blue-chip CSI300 index rose 4.3 percent, to 3,342.29 points, reducing the week's loss to 6.9 percent. The Shanghai Composite Index gained 4.8 percent to 3,232.35 points, though for the week, it lost 7.9 percent.
But a rally in Hong Kong petered out, with the flagship Hang Seng Index changing course before the closing bell and losing 1 percent.
"Investor confidence remains shaky," said Dominic Chan, analyst at GF Securities in Hong Kong.
He said many investors believed the recent rally in Hong Kong is not sustainable, and they felt that way about mainland markets too. Continuación...