* SSEC +0.3 pct, CSI300 +0.4 pct, HSI +0.4 pct
* MSCI seeks feedback on adding China A shares
* Tencent tumbles after missing profit estimate
SHANGHAI, March 23 China stocks rebounded on
Thursday morning as hopes resurfaced for index compiler MSCI to
include A-shares this year, but gains were capped with more
mainland money flowing into Hong Kong through trading links.
Hong Kong stocks joined an Asia-wide rise inspired by a
firmer Wall Street.
The CSI300 blue-chip index rose 0.4 percent to
3,463.41 at the end of the morning session, while the Shanghai
Composite Index gained 0.3 percent, to 3,255.13.
Investors found some solace after index compiler MSCI said
it was seeking feedback from market participants on whether to
add Chinese A-shares to its China Index and emerging markets
"The news is neutral, but the market does have expectation
that this year is going to be the year," said Cao Xuefeng, head
of research at Huaxi Securities in Chengdu, adding China stocks
were expected to be in greater demand from overseas investors
once MSCI adds China's A-shares to its indexes.
Cao cautioned that China stocks would be subdued in the
longer term as he saw more money flowing out of China and into
Hong Kong to buy better-priced stocks.
Insurance firms advanced on news that the premium income
received by insurers jumped more than 30 percent in the first
two months, compared with a year earlier.
China Life Insurance Co Ltd and Ping An
Insurance Group Co of China Ltd gained 1.4 percent
and 1.9 percent, respectively, at the lunch break.
But liquor makers turned bearish, bucking a broad trend, as
an index tracking the sector retreated after it
climbed to an all-time high in the previous session.
In Hong Kong, the Hang Seng index added 0.4 percent
to 24,404.56, while the Hong Kong China Enterprises Index
gained 0.7 percent, to 10,524.53.
Inflows from the Shanghai-Hong Kong Stock Connect were 11.1
percent of Thursday's daily quota by the lunch break, already
above the quota of 7.8 percent used on Wednesday.
Most sectors in Hong Kong gained ground, with gains led by
mainland property developers.
Index heavyweight Tencent Holdings Ltd was down
1.2 percent at the midday break after the tech giant reported
quarterly profits of 10.53 billion yuan ($1.53 billion) on
Wednesday, below the average estimate in a Reuters poll.
($1 = 6.8876 Chinese yuan renminbi)
(Reporting by Jackie Cai and John Ruwitch; Editing by Eric