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Heady Moutai liquor profits boost China investors' spirits, Hong Kong slips

* SSEC +0.5 pct, CSI300 +0.8 pct, HSI -0.2 pct

* Moutai's quarterly profit doubles, boosts consumer sector

* Property shares flat on government inspection

SHANGHAI, Oct 26 (Reuters) - China's blue-chip index powered to a 28-month high on Thursday as stellar earnings reports from companies such as liquor maker Moutai lifted sentiment, despite further rises in bond yields signalling tighter liquidity.

The blue-chip CSI300 index rose 0.8 percent to 4,007.88 points by the end of the morning session, while the Shanghai Composite Index gained 0.5 percent to 3,412.45.

Investors' attention shifted back towards earnings and economic fundamentals after a week-long Communist Party Congress and the country's new leadership line-up revealed on Wednesday provided few major surprises.

Giving a big boost to confidence, Kweichow Moutai , already the world's most valuable liquor maker, reported a more than doubling in its third-quarter net profit.

Moutai shares leapt more than 6 percent to a fresh peak, leading a 3.5 percent jump in the consumer sector..

China's tech-heavy ChiNext board also rose, as Beijing reiterated pledges to shift to a more innovation-driven economy.

But real estate shares struggled for traction, after Chinese authorities said on Wednesday the government will launch a month-long joint inspection of property developers and estate agents for any signs of price manipulation and falsified contracts.

"Economic growth is still the biggest source of legitimacy for the ruling party," Larry Hu, analyst with Macquarie Capital Limited, wrote in report.

"As both infrastructure and property investment are set to slow, we believe policy makers will continue to be supportive of the new economy as well as a dozen of key industrial sectors,"

The optimism offset a sell-off in bond markets. China's 10-year treasury futures fell to the lowest level in 8 1/2 months, while 10-year treasury yields rose to the highest since December, 2014.

After heavy net injections of some 840 billion yuan ($126.70 billion) to ensure market stability during the congress, the central bank refrained from putting funds into the market on Wednesday and injected minimally on Thursday.

Traders saw that as a signal that the injections over congress were a one-off and that the central bank's core policy of gradually deleveraging the economy remains intact.

HONG KONG

Hong Kong stocks dipped amid concerns of tighter liquidity in global financial markets.

The European Central Bank is all but certain to cut back on its bond-buying stimulus later in the day, taking its biggest step yet in unwinding years of loose monetary policy.

The Hang Seng index dropped 0.2 percent to 28,257.17 points, while Hong Kong China Enterprises Index was unchanged at 11,490.00.

(Reporting by Liu Luoyan, Samuel Shen and John Ruwitch; Editing by Kim Coghill)