* SSEC +0.4 pct, CSI300 +0.2 pct, HSI +0.5 pct
* If Fed raise rates, China likely to follow - traders
* China, foreign investors duel in Great Wall Auto's HK
SHANGHAI, June 13 China and Hong Kong stocks
rebounded on Tuesday morning, as Asian investors shook off a
further slide in U.S. tech shares, although they remained
cautious ahead of a likely U.S. rate hike this week.
China's blue-chip CSI300 index rose 0.2 percent,
to 3,579.79 points by the lunch break, while the Shanghai
Composite Index gained 0.4 percent, to 3,151.25 points.
Small-caps bounced back. Shenzhen's start-up board ChiNext
, which dropped 1.2 percent on Monday, gained over 1
But investors were wary as many expect liquidity to tighten.
"There's not much upside potential, as tighter liquidity
will likely seep into the real economy, pressuring growth," said
Liu Sijia, strategist at Donghai Securities in Shanghai.
A small majority of traders in China's financial markets
think its central bank will likely raise short-term interest
rates this week if the U.S. Federal Reserve hikes its key policy
rate, as widely expected, according to a Reuters poll.
Although the size of any China rate move - likely confined
to rates on open market operations - is expected to be modest, a
tightening could exacerbate economic growth concerns.
Most sectors rose on Tuesday, with raw material shares
leading the gain.
An index tracking coal producers jumped more
than 2 percent, as China's coal futures hit 2-month high.
Shares in Hong Kong shares rebounded, recovering much of
Monday's sharp falls.
The Hang Seng index added 0.5 percent, to 25,841.87
points, while the Hong Kong China Enterprises Index
gained 0.8 percent, to 10,565.92.
Great Wall Motor Co was in the spotlight, after
its Hong Kong-listed shares surged 21 percent on Monday, in what
was interpreted as a victory for mainland buyers' over foreign
investors in the duel for pricing power in Hong Kong.
The stock was down 2.5 percent on Tuesday. Great Wall's Hong
Kong-traded shares are 25 percent owned by mainland investors
via the Connect schemes.
If the Fed raises U.S. interest rates, Hong Kong will also
(Reporting by Samuel Shen and John Ruwitch; Editing by Richard