* SSEC 0.2 pct, CSI300 0.2 pct, HSI -0.1 pct
* Mainland bond scandal sees fresh progress
* Tencent shares up on new wechat service
SHANGHAI, Dec 29 China stocks reversed early
losses and edged higher on Thursday morning amid signs of easing
liquidity stress, but gains were capped on news that the
insurance regulator could introduce more measures to deter
aggressive stock investment by insurers.
Hong Kong stocks ended the morning session in negative
territory, with strength in tech stocks outweighted by the
bearish influence of Wall Street, where stocks lost the most in
two months overnight.
The CSI300 index rose 0.2 percent, to 3,309.78
points by the end of the morning session, while the Shanghai
Composite Index gained 0.2 percent, to 3,109.14 points.
The Hang Seng index dropped 0.1 percent, to 21,733.26
points, while the Hong Kong China Enterprises Index lost
0.3 percent, to 9,275.77 points.
Investors on the mainland found some solace from progress
made to avoid defaults resulting from a recent bond scandal.
Sealand Securities said on Thursday it had signed agreements
with 19 counterparties to resolve the "forged" bond dispute.
Reflecting fading fears of a liquidity crunch, China's
10-year treasury futures rose nearly 1 percent by the
But investors stayed cautious following news that the
insurance regulator planned to establish a discriminatory
supervision system that would keep a closer watch on some
unconventional insurance products, in the latest move to rein in
aggressive stock investment.
Most sectors in China gained modest ground, with industry
sector the best performer, up more than 0.6 percent.
In Hong Kong, sector performance was mixed.
An index tracking information technology stocks
added more than 2 percent at the lunch break, after receiving a
boost from index heavyweight Tencent Holding Ltd.
Shares of the tech giant gained the most in seven weeks and
were up around 2.6 percent at midday, after Tencent said on
Wednesday that the long-awaited "Little Program" feature of its
popular messaging application WeChat would go live on January 9.
(Reporting by Jackie Cai and John Ruwitch; Editing by Simon