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Hong Kong shares edge toward 6th weekly gain, China slips

(Updates to midday)

* HSI up 0.5 pct, H-shares climb 0.8 pct * CSI300 down 0.4 pct, Shanghai Comp sheds 0.3 pct

* Chinese banks still strong in HK, CCB set for best week in 11

* Chinese property A-share weak, land market still reportedly weak

By Clement Tan

HONG KONG, Oct 12 (Reuters) - Hong Kong shares rose to a five-month high on Friday, set for a sixth-straight weekly gain as investors put money in growth-sensitive sectors on expectations of more governmental support for the Chinese economy.

The Hang Seng Index went into the midday break up 0.5 percent, keeping it up 0.4 percent on the week. The China Enterprises Index of the top Chinese listings in Hong Kong rose 0.8 percent and is up 3.5 percent this week.

Mainland Chinese markets slipped for a second day, with the property sector a key drag after state-run China Securities Journal reported that the physical land market has not yet fully recovered.

The CSI300 Index of the biggest Shanghai and Shenzhen listings slipped 0.4 percent and is flat on the week. The Shanghai Composite Index lost 0.3 percent, but is still up 0.5 percent this week.

While optimism has improved, investors still want to see more substantial signs of government policy to boost growth.

"Sentiment has changed for the better, but the market is still looking for details on the nature of Beijing's policy before committing more to the rally," said Jackson Wong, Tanrich Securities' vice-president for equity sales.

Investors will also be watching a slew economic data due to be released in the coming days for fresh clues on how long the slowdown in the world's second-largest economy will last.

Beijing is expected to post September trade data on Saturday and inflation on Monday. Money supply and loan growth data is expected by Monday.

Higher inflation is seen likely to weaken Beijing's hand for more monetary policy loosening.

Major policy changes are seen unlikely until after the Communist Party's once a decade leadership change when the 18th National Congress meeting takes place on Nov. 8.

CHINESE BANKS STILL STRONG

In Hong Kong, Chinese banks were once again stronger. China Construction Bank (CCB) climbed 1.6 percent. Bank of China rose 0.7 percent, while Industrial and Commercial Bank of China (ICBC) gained 0.4 percent.

CCB is up 5.1 percent in Hong Kong this week, its best weekly gain in 11 weeks, after Central Huijin, a unit of China's sovereign wealth fund, said late on Wednesday that it had bought Shanghai-listed shares of the "big four" banks and would continue to increase its stakes.

Resources-related names were mostly stronger. Aluminum Corporation of China (Chalco) led percentage gains among Hang Seng Index constituents, jumping 4.7 percent.

But the Chinese steel sector slipped after the Economic Information Daily newspaper in China reported that the country's China's 80 biggest steel companies posted aggregate losses in the first eight months of this year.

Angang Steel lost 2 percent in Hong Kong and 0.6 percent in Shenzhen.

The property sector also dragged the onshore Chinese markets lower. Poly Real Estate lost 1.9 percent, while China Vanke shed 0.8 percent.

Li Ning jumped 5.4 percent after China's best-known sportswear brand said its chief financial officer has resigned, the latest deparure from senior management as the company grapples with a slowdown in the world's second-largest economy.

(Additional reporting by Vikram Subhedar; Editing by Simon Cameron-Moore)

((clement.tan@thomsonreuters.com)(+852 2843-6392)(Reuters Messaging: clement.tan.thomsonreuters.com@reuters.net))

Keywords: MARKETS HONGKONG CHINA STOCKS/

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