* HSI +0.1 pct, HSCE +0.4 pct, CSI300 +0.7 pct, SSEC +0.5 pct
* Brokerages outperform in both markets
* China rose on policy support on water conservations
* Hong Kong indexes follow the mainland market, caution
By Chen Yixin and Pete Sweeney
SHANGHAI, Nov 26 (Reuters) - China stocks rose on Wednesday, due to gains for brokerages and other finance-sector shares that continue to welcome the central bank’s surprise interest rate cut on Friday.
The CSI300 index was up 0.7 percent, to 2,704.11 points, at the end of the morning session, while the Shanghai Composite Index gained 0.5 percent, to 2,580.85 points.
Huatai Securities jumped its 10 percent daily limit after it said it won approval to list in Hong Kong.
Water conservation-related shares performed well after the official Xinhua news agency reported that Premier Li Keqiang said China would accelerate projects to tackle water shortages and bolster wider economic growth.
Hong Kong’s Hang Seng index edged up 0.1 percent, to 23,868.35 points. The Hong Kong China Enterprises Index gained 0.4 10,829.79 percent, to 10,829.79 points.
Kevin Tam, senior analyst at Core Pacific-Yamaichi International in Hong Kong, said the rate cut was only bringing a short-term boost to that city’s market.
While the Chinese central bank’s move gives investors a reason to trade and speculate, “market sentiment is not that strong right now as an interest rate cut is a (negative) signal about the current economic situation in China,” Tam said.
Energy shares extended their losses as U.S. oil prices tumbled 2 percent to near four-year lows on Tuesday after a meeting of Saudi Arabia and three other nations ahead of an OPEC summit ended with no deal to curb crude output.
By midday, overseas investors had taken up more than 15 percent of the daily 13 billion yuan ($2.12 billion) northbound quota for the Shanghai-Hong Kong mutual market access programme. Mainland investor interest remained tepid, taking up slightly over 1 percent of the daily southbound quota of 10.5 billion yuan.
Total volume of A shares traded in Shanghai was 19.21 billion shares, while Shenzhen volume was 11.36 billion shares.
The total volume traded in Hong Kong was 36.47 billion shares. (1 US dollar = 6.1336 Chinese yuan) (Additional reporting by SHANGHAI Newsroom; Editing by Richard Borsuk)