Wires

Hong Kong shares get lift from China markets but off highs

HONG KONG, Oct 9 (Reuters) - Hong Kong shares closed near afive-month high on Tuesday as hopes of more steps to support themarket from Beijing spurred rallies in large-cap banking andenergy shares in mainland markets.

The Hang Seng rose 0.5 percent but closed off itshighs, which were the strongest levels since early May.

Chinese banks and oil producers, which carry the biggestweightings in the local benchmark indexes, lifted the ChinaEnterprises index 1.3 percent higher.

On the mainland the CSI300 index of top Shanghaiand Shenzhen listings rose 2.2 percent while the ShanghaiComposite rose 2 percent, with gains coming in healthyvolumes.

HIGHLIGHTS:

* ICBC shares rose 1.5 percent and was the topboost on the Hang Seng after a report that China's CentralHuijin Investment, a state-owned asset management company, hadbought 6.3 million shares of the bank in the third quarter. Thatled to speculation that Huijin may lift its stake in otherChinese banking shares, traders said, as authorities try torestore confidence among the mainland's retail investors.

* There was no respite for ZTE Corp shares, whichextended losses to slump 5.6 percent after a U.S. congressionalreport said the company could pose a security threat, dashinghopes of expansion plans. ZTE shares are down around 11 percentsince last Friday's close.

(Reporting by Vikram Subhedar; Editing by Anne Marie Roantree)

((vikram.subhedar@thomsonreuters.com)(+852 28436975))

Keywords: MARKETS HONGKONG CHINA STOCKS/ CLOSER

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