July 4, 2016 / 5:01 AM / 2 years ago

Higher commodity prices, stimulus hopes buoy shares in China, Hong Kong

* CSI300 +1.7 pct; SSEC +1.8 pct; HSI +1.6 pct

* Firmer commodity prices boost resources stocks

* Vanke jumps in Hong Kong, China shares fall by daily limit

HONG KONG, July 4 (Reuters) - Stocks in China and Hong Kong rose on Monday as higher commodity prices and hopes that Beijing will roll out more stimulus measures boosted shares of resources companies.

The mainland’s blue-chip CSI300 index was up 1.7 percent by the lunch break, heading for its biggest intraday percentage gain in more than a month, while the Shanghai Composite Index gained 1.8 percent to 2,984.47.

Chinese commodities from nickel to cotton surged on Monday, while global oil prices held on to sharp gains seen last week.

Growth in China’s manufacturing sector stalled in June, an official survey showed on Friday, adding to expectations that Beijing will have to roll out more stimulus soon to boost the sluggish economy.

“The A-share market shows strong upside momentum today as market players have digested most negative news in the past few weeks,” said Zhang Qi, an analyst at Haitong Securities in Shanghai.

“Investor confidence is also boosted by rising commodity futures prices.”

Sector performance was strong across the board with a 3.4 percent gain in resources and rises in banks , consumer stocks and healthcare .

“We expect short-term sentiment to remain good and funds will continue to flow in after a lot of funds retreated from the market at the beginning of the year,” Qi said.

In Hong Kong, the blue chip Hang Seng Index rose 1.5 percent to 21,098.80, while the Chinese enterprises index climbed 1.3 percent.

Hong Kong shares of China Vanke rose 8.7 percent, heading for the best day since Mar. 14, after the developer rejected a call from its biggest shareholder for a general meeting aimed at ousting its board.

But Vanke’s Shenzhen shares fell by their daily limit of 10 percent as trading resumed on Monday after a suspension of more than six months pending a restructuring plan.

Reporting by Michelle Chen and Donny Kwok; Editing by Kim Coghill

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