* CSI300 +1.1 pct; SSEC +0.9 pct; HSI +1.6 pct
* Moderating inflation sparks stimulus hopes
* Analysts say earnings estimates relatively upbeat
SHANGHAI, July 11 (Reuters) - China stocks rose on Monday after inflation data over the weekend raised hopes the government may deploy more stimulus in the second half of the year to prop up the sluggish economy.
Gains were broad based with manufacturing, mining, and finance and insurance shares all rising. Investors await June lending data this week for evidence of any pick-up in business activity.
“Recently the market has been doing relatively well,” said Zhang Qi, analyst at Haitong Securities in Shanghai.
“One factor is the pullback in the inflation data released over the weekend. Another is that recent corporate earnings forecasts have given a good impression.”
Consumer prices in June grew at their slowest pace since January, while producer prices extended their decline, reinforcing economists’ views more support was needed to help the economy.
June prices rose 1.9 percent from a year earlier, slightly faster than estimates but down from the pace in May, and producer prices fell 2.6 percent, more than the 2.5 percent fall forecast in a Reuters poll.
“On a monthly basis, CPI and PPI dropped by 0.1 percent and 0.2 percent, respectively, illustrating a softening trend and in line with the weakening growth profile,” wrote Zhou Hao, senior emerging market economist at Commerzbank in Singapore in a note following the inflation data Sunday.
“Further policy easing is still on the cards, and we hold our view that the PBOC will cut both interest rates and reserve requirement ratio this month.”
Recent commentaries in state media have indicated that China’s economy still needs more fiscal support, but money supply would likely grow slower in the second half following record lending earlier in 2016.
The CSI300 index rose 1.1 percent, to 3,225.77 points at the end of the morning session, while the Shanghai Composite Index gained 0.9 percent, to 3,015.27 points.
China CSI300 stock index futures for July rose 1.3 percent, to 3,218, 7.77 points below the current value of the underlying index.
The Hang Seng index added 1.6 percent, to 20,902.37 points, buoyed by regional markets and a strong finish on Wall Street following outsized U.S. job gains.
The Hong Kong China Enterprises Index gained 2.2 percent, to 8,721.92.
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 131.35131.37.
A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.
The northbound quota for the Hong Kong-Shanghai Stock Connect, currently set at 13 billion yuan, saw net inflows of 0.95 billion yuan.
Total volume of A shares traded in Shanghai was 12.28 billion shares, while Shenzhen volume was 14.59 billion shares.
Total trading volume of companies included in the HSI index was 1.2 billion shares.
Reporting by Nathaniel Taplin; Editing by Jacqueline Wong