* SSEC +0.6 pct, CSI300 +1.0 pct, HSI +0.5 pct
* HK->Shanghai Connect daily quota used 2.4 pct, Shanghai->HK daily quota used 1.7 pct
* China’s industrial profits shrink most since late 2011
SHANGHAI, March 27 (Reuters) - China stocks rose on Wednesday, rebounding from two straight sessions of losses, on expectation Beijing would roll out more supportive measures to support growth after data showed industrial profits shrank the most since late 2011.
** The CSI300 index rose 1.0 percent, to 3,738.06 points, by the end of the morning session, while the Shanghai Composite Index gained 0.6 percent, to 3,013.57 points.
** China’s industrial firms posted their worst slump in profits since late 2011 in the first two months of this year, data showed, as increasing strains on the economy in the face of slowing demand at home and abroad took a toll on businesses.
** Beijing is beefing up measures to support the manufacturing industry by cutting the value-added tax, increasing infrastructure spending and reducing direct government intervention.
** “I advise the government to further lower value-added tax, and if implemented, it will effectively boost the profit-making ability of the manufacturing industry,” said Li Dongsheng, CEO of TCL Corp.
** China’s economy showed “unmistakable” signs of recovery in the first quarter, with company profits, investment and hiring improving, but policymakers may be relying too much on extraordinary levels of credit, a private survey showed.
** Foreigners resumed their net buying of A-shares on Tuesday and Wednesday morning, after selling a bit more than 10 billion yuan ($1.49 billion) worth of stocks on Monday via the Stock Connect.
** “The short-term foreign outflows, a rebalancing act of global asset allocation amid concerns over world economic growth, will not change the secular trend of foreign investors’ buying into A-shares,” domestic brokerage CITIC Securities said in a report.
** Gains were led by healthcare and consumer firms. The CSI300 healthcare index rose 3.1 percent by midday, while the CSI consumer staples index gained 2.3 percent.
** The Hang Seng index added 0.5 percent, to 28,717.32 points, while the Hong Kong China Enterprises Index gained 0.8 percent, to 11,318.91.
** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.03 percent, while Japan’s Nikkei index was down 0.44 percent.
** The yuan was quoted at 6.7157 per U.S. dollar, 0.01 percent weaker than the previous close of 6.715.
** The largest percentage gainers on the main Shanghai Composite index were North China Pharmaceutical Co Ltd , up 10.1 percent, followed by Chongqing Gangjiu Co Ltd, gaining 10.08 percent, and Jiangsu Lianyungang Port Co Ltd, up by 10.08 percent.
** The largest percentage losers on the Shanghai index were Yangzhou Yaxing Motor Coach Co Ltd, down 8.88 percent, followed by Xiamen King Long Motor Group Co Ltd , losing 8.65 percent, and Huaibei Mining Holdings Co Ltd, down by 8.27 percent.
** So far this year, the Shanghai stock index is up 20.18 percent, while China’s H-share index is up 10.9 percent. Shanghai stocks have risen 1.91 percent this month.
** The top gainers among H-shares were SINOPHARM GROUP CO LTD, up 3.61 percent, followed by China Merchants Bank Co Ltd, gaining 3.18 percent, and Air China Ltd , up by 3.06 percent.
** The three biggest H-shares percentage decliners were Byd Co Ltd, which has fallen 3.97 percent, GF Securities Co Ltd, which has lost 2.6 percent, and PICC Property and Casualty Co Ltd, down by 1.6 percent.
** About 17.36 billion shares have traded so far on the Shanghai exchange, roughly 44.6 percent of the market’s 30-day moving average of 38.96 billion shares a day. The volume traded was 35.35 billion as of the last full trading day.
** As of 04:19 GMT, China’s A-shares were trading at a premium of 22.61 percent over the Hong Kong-listed H-shares. ($1 = 6.7144 Chinese yuan)
Reporting by Luoyan Liu and John Ruwitch; Editing by Subhranshu Sahu