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China shares up despite weak property sector; Hong Kong rises too

* HSI +0.5 pct, H-shares +0.3 pct, CSI300 +0.2 pct

* Chinese property broadly weak on home price data

* Kweichow Moutai up on spin-off report

* Tencent, ChinaVision rise

HONG KONG/SHANGHAI, March 18 (Reuters) - China shares rose on Tuesday, in spite of home-price data that hurt property stocks and a mainland media report that a local developer could default on a large loan.

Shares in Kweichow Moutai helped lead gains in Chinese stocks after media reports that the distiller was looking to spin off some of its assets.

Hong Kong shares posted their first gains after four straight days of losses, but investors remained cautious on concerns over Chinese economic growth prospects.

By midday, the Hang Seng Index was up 0.5 percent at 21,577.10 points. The China Enterprises Index of the top Chinese listings in Hong Kong gained 0.3 percent.

The CSI300 rose 0.2 percent, while the Shanghai Composite Index was up 0.3 percent at 2,029.66 points.

"There may be a chance for some technical rebound but because there is no good news right now, so I don't think the rebound momentum will be too great," said Linus Yip, strategist at First Shanghai Securities.

Yip said the market was expecting stimulus policies to be announced in mainland China and that investors are taking a wait-and-see approach.

Property plays were broadly weak on Tuesday after average new home prices in China's 70 major cities increased 8.7 percent in February, easing from the previous month's 9.6 percent rise, the second consecutive month of a slowing.

A report in state-owned China News Services said unlisted Chinese property developer Zhejiang Xingrun Real Estate Co owes 3.5 billion yuan ($566.52 million) to banks and individuals, and is close to insolvency.

Shanghai-listed Poly Real Estate Group fell 3.1 percent and China Vanke slipped 1.6 percent. In Hong Kong, China Resources Land dropped 1.5 percent and China Overseas Land and Investment fell 2.7 percent.

Shanghai Jinfeng Investment Co jumped its 10 percent daily limit on Tuesday as Greenland Holding Group Co., a Shanghai city government-owned builder, injected 65.5 billion yuan of assets into the company in exchange for new shares of the Shanghai-listed firm.

Kweichow Moutai shares gained 5.3 percent after China Securities Journal reported the company plans to seek a separate listing of some of its liquor business.

Shares in internet giant Tencent, which closed on Monday at their lowest since Feb. 13, gained 5.7 percent after the company sold HK$1.01 billion ($130.06 million) shares in ChinaVision Media to reduce its stake to 1.23 percent from 8 percent, according to a stock exchange disclosure.

ChinaVision shares rose 5.2 percent on the announcement.

The share sale came a day after Alibaba announced acquisition of 60 percent of ChinaVision for HK$6.2 billion last week.

China's central bank is considering regulations that would limit the use of third party payment systems, including the payment arms of Tencent and Alibaba Holding Group.

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