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China stocks buoyed by bank profits, high-tech; Hong Kong up 0.4 pct

* SSEC 0.6 pct, CSI300 0.5 pct, HSI 0.4 pct

* Bank A- and H-shares surge on rising profits

* Technology companies build on Monday's gains

SHANGHAI, Aug 15 (Reuters) - China stocks extended gains on Tuesday as markets continued to recover from tensions over North Korea and profit taking, with banks among the top performers on expectations of stronger profits.

Markets were little fazed by U.S. President Donald Trump's decision to order a inquiry into China's intellectual property practices. The process could take a year, giving Beijing plenty of time to discuss the issue with Washington before it takes any action.

The CSI300 index rose 0.5 percent to 3,712.12 points by the end of the morning session, while the Shanghai Composite Index gained 0.6 percent to 3,258.16.

China CSI300 stock index futures for August rose 0.4 percent, to 3,699.6, 12.52 points below the current value of the underlying index.

"After the correction on Friday, banks and insurance companies are rebounding following the strong performance of small and mid-sized companies yesterday," said Zhang Gang, an analyst at Central China Securities.

"News about rising profits are also a factor as banks' performance has exceeded market expectations."

China's banking regulator said late on Monday that first-half profits for commercial lenders rose nearly 8 percent from the same period in 2016, while the level of non-performing loans (NPLs) in June did not increase from March.

The banks sub-index rose 2.2 percent.

Bank of China posted the strongest gains in the sector, rising 4.1 percent. China Merchants Bank Co Ltd gained 3.6 percent.

Technology firms also continued to strengthen after gains on Monday.

Shares in iFlytek Co Ltd hit their highest level in more than two years in morning trade and were up 3.0 percent by midday. The company, which makes voice-recognition software, announced a 58.1 percent rise in first-half profits last week.

Security products manufacturer Zhejiang Dahua Technology Co Ltd jumped 4.7 percent to 25.06 yuan. Nomura and Deutsche Bank, both of which maintain a "Buy" rating on the company's shares, raised their target prices last week to 28.50 yuan and 27.50 yuan, respectively.

HONG KONG

The Hang Seng index added 0.4 percent to 27,358.09, lifted by strong performance in mainland banks.

The Hong Kong China Enterprises Index gained 1.2 percent, to 10,832.92.

Industrial and Commercial Bank of China Ltd gained 3.9 percent.

Wanda Hotel Development Co Ltd lost 1.4 percent after having surged 150 percent since the beginning of August.

Shares in the unit of Chinese conglomerate Dalian Wanda Group reached a two-year high yesterday after it said last week that it plans to buy assets worth over $1 bln from firms controlled by its billionaire founder Wang Jianlin.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 128.41.

A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.

(Reporting by Andrew Galbraith; Editing by Kim Coghill)