HK, Shanghai shares up on upbeat results; ChiNext soars

* China, Hong Kong cheer upbeat corporate results

* ICBC, Bank of China rebound on profit jump

* Brilliance China's rally fizzles out
(Updates to midday)

By Jun Ebias and Claire Zhang

HONG KONG/SHANGHAI, Oct 30 (Reuters) - Shares in Hong Kong
and Shanghai rebounded on Friday, as solid earnings from top
Chinese lenders pushed up bank stocks, while China's remark about
sticking to its loose monetary policy lifted overall sentiment.

China's long-awaited Nasdaq-style second board also debuted
with a speculative surge that more than doubled the price of all
its 28 stocks. [ID:nSHA201386]

Central bank governor Zhou Xiaochuan said on Friday that
China would stick to an appropriately loose monetary policy,
reaffirming Beijing's commitment to easier rates as speculation
mounts about an eventual policy shift. [ID:nBJC002379]

The Shanghai Composite Index .SSEC rose 2.13 percent to
3,023.460 points, clawing back most of the previous day's loss
when the index fell to its lowest close in more than two weeks.

The benchmark Hang Seng Index .HSIC rose 2.99 percent or
636.15 points to 21,901.14 at midday, as investors covered short
positions after a sell-off in the last three sessions.

Turnover was HK$42.60 billion ($5.5 billion), down from
midday Thursday's HK$47.68 billion.

"Short covering started yesterday, as we saw some strong
buying towards the close of the market," said Jackson Wong,
investment manager at Tanrich Securities. "The strong rebound on
Wall Street and the weak U.S. dollar pushed the market even
higher."

Industrial & Commercial Bank of China (ICBC) (1398.HK: Quote, Profile, Research) and
Bank of China (3988.HK: Quote, Profile, Research) gained after reporting a jump in
quarterly profits. [ID:nPEK304345] and [ID:nHKG6957]

ICBC rose 4.28 percent, after losing 6.5 percent in the last
three sessions and rebounding from a three-week low on Thursday.
Bank of China gained 6.24 percent, recovering from a two-week low
on Thursday and after losing 7.1 percent in the last three days.

In Shanghai, ICBC (601398.SS: Quote, Profile, Research) gained 2.02 percent to 5.05
yuan and Bank of China (601988.SS: Quote, Profile, Research) rose 1.76 percent to 4.04
yuan. Merchants Bank (600036.SS: Quote, Profile, Research) jumped 4.92 percent to 17.90
yuan ahead of its earnings report due over the weekend.

Henderson Land (0012.HK: Quote, Profile, Research) led Hong Kong developers higher,
gaining 7.61 percent. The stock slumped 10.4 percent in the last
five days and fell to a three-week low on Thursday.

The firm said it plans to pay a HK$9.6 billion ($1.24
billion) land premium, in a bid to boost its residential land
reserve through a change of land usage. [ID:nHKG7346]

Other local developers, which have fallen in recent sessions
on concerns Hong Kong may impose more measures to curb fast
rising property prices, also rebounded. Sun Hung Kai Property
(0016.HK: Quote, Profile, Research) was up 5.87 percent.

The China Enterprise Index .HSCE of top locally listed
mainland Chinese stocks was up 3.62 percent at 12,918.58.

Brilliance China Automotive (1114.HK: Quote, Profile, Research) rose 3.88 percent,
after a strong 8.53 percent open. The Chinese minibus
manufacturer and a joint venture partner of BMW said it would
sell its loss making-Zhonghua sedan brand business.

China Resources Enterprise Holdings (0291.HK: Quote, Profile, Research) rose 6.57
percent as it aimed to focus on the rapidly growing consumer
market on the mainland through an asset swap with a major
shareholder. [ID:nHKG728]

CNOOC Ltd (0883.HK: Quote, Profile, Research) (CEO.N: Quote, Profile, Research) was up 4.7 percent. China's top
offshore oil and gas producer said it produced 18.4 percent more
oil and gas in the third quarter. [ID:nHKG324730]

Tsingtao Brewery (0168.HK: Quote, Profile, Research) (600600.SS: Quote, Profile, Research) was up 3.9 percent.
China's best known beer brand said on Thursday its net profit
jumped 93 percent in the third quarter. [ID:nHKG264504]

After opening strong at HK$2.18, Comtec Solar 0712,HK, the
China-based solar ingots and wafer maker, fizzled out on its
debut. The stock ended HK$2.00 at midday, versus its IPO price of
HK$2.10.

SHANGHAI GAINS

Gaining Shanghai A shares far outnumbered losers by 869 to
19, while turnover edged down to 61 billion yuan ($9 billion)
from Thursday morning's 62 billion yuan.

The ChiNext stock market <0#CHINEXT.SZ> kicked off trading
with a bang on Friday as all 28 new shares more than doubled from
their IPO prices and triggered exchange circuit-breakers intended
to prevent excessive price rises. [ID:nSHA201386]

"The start-up shares' performance thoroughly exceeded
expectations and is drawing a lot of attention, but given the
higher risks with start-ups, more people prefer to focus on
main-board shares with stable profits," said Xu Yinhui, senior
analyst at Guotai Junan Securities.

"The index may fluctuate around the key 3,000 point level in
the short term, but its outlook for the next three months remains
positive with expectations for improving economic data and
corporate earnings in the fourth quarter," he added.

Steel shares were firmer, with China's Baoshan Iron and Steel
(600019.SS: Quote, Profile, Research), the world's third-largest steelmaker, advancing 1.33
percent to 6.84 yuan. The firm posted a 6.7 percent rise in
quarterly net profit. [ID:nSHA267483]
(Editing by Jacqueline Wong)