July 21, 2016 / 4:21 AM / 2 years ago

China stocks rise at midday as investors hunt for bargains

* CSI300 +0.9 pct, SSEC +0.7 pct, HSI +0.7 pct

* Buyers return to market after 5 straight declines

* Volumes still weak

SHANGHAI, July 21 (Reuters) - China stocks rose on Thursday as investors went bargain hunting for mainland shares which sold off over the past five sessions, despite a global equity rally which has taken many other indexes sharply higher.

Although Hong Kong’s Hang Seng Index and the Euro Stoxx are up 1.5 percent and 0.4 percent respectively over the past week, China’s CSI300 is off 0.3 percent, in what analysts say is a reaction to uncertain domestic economic conditions following mixed data issued since mid-month.

Analysts say that China’s Shanghai Composite Index will struggle to move much higher than 3000 without clearer positive signals from the economy.

Nonetheless after five straight sessions of small losses, buyers came back to the market today, although volumes were low.

Finance shares led indexes higher but gains were broad based extending through most sectors including manufacturing, information technology, real estate, and utilities.

The CSI300 index rose 0.9 percent, to 3,266.30 points at the end of the morning session, while the Shanghai Composite Index gained 0.7 percent, to 3,048.75 points.

China CSI300 stock index futures for August rose 1.1 percent, to 3,236.6, 29.70 points below the current value of the underlying index.

The Hang Seng index added 0.7 percent, to 22,037.43 points.

The Hong Kong China Enterprises Index gained 0.6 percent, to 9,080.52.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 128.06.

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 0.50 billion yuan.

Total volume of A shares traded in Shanghai was 8.60 billion shares, while Shenzhen volume was 11.84 billion shares.

Total trading volume of companies included in the HSI index was 0.7 billion shares.

Reporting by Nathaniel Taplin; Editing by Eric Meijer

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