China stocks rise, supported by small caps; Hong Kong down
* CSI300 +0.6 pct; SSEC +0.7 pct; HSI -1.3 pct
* Investors lukewarm to accelerated SOE reforms
* China's PMI survey on Wednesday in spotlight
SHANGHAI, Sept 21 (Reuters) - China stocks rose on Monday morning supported by demand for small caps while Hong Kong shares fell, with investor sentiment soured by weakness in global equity markets.
China's key indexes opened lower but edged up by the lunch break. The CSI300 index rose 0.6 percent, to 3,271.26 points, while the Shanghai Composite Index gained 0.7 percent, to 3,118.81 points.
Small-caps rebounded strongly, with Shenzhen's start-up board ChiNext up 3 percent, and an index tracking tech shares surging 3.2 percent.
"Investors seem to be favouring short-term trading in the IT sector with relatively frequent rallies and corrections," wrote Gerry Alfonso, director at Shenwan Hongyuan Securities.
But trading remained thin, with the market still in a downtrend and many traders staying sidelined amid lingering worries about the economy.
Markets are looking to China's flash factory activity survey on Wednesday for clues on whether the economy is deteriorating more rapidly than earlier thought. Continuación...