* SSEC 1.3 pct, CSI300 1.2 pct, Hong Kong market closed
* China property shares slump on fresh purchase restrictions
* Impact of U.S. presidential election on China limited
SHANGHAI, Oct 10 China stocks rose over 1
percent on Monday as investors returning from a week-long
holiday caught up to buoyant global markets, but gains were
capped by selling in property shares as more cities imposed
curbs on home purchases to cool surging prices.
The second U.S. presidential debate drew limited attention
from fund managers in China, with investors more focused on the
impact of fresh property measures introduced over the "Golden
Week" holiday by over a dozen Chinese cities.
China's central bank governor, in remarks released on
Saturday, stepped up the rhetoric against rapid rises in home
prices and continued credit growth, signalling further action.
China's blue-chip CSI300 index rose 1.2 percent,
to 3,291.49 points by the lunch break, while the Shanghai
Composite Index gained 1.3 percent to 3,042.18.
During China's National Day holiday, Asian shares
flirted with one-month highs, while Wall Street
stocks were also firm.
Investors also responded positively on Monday to a private
survey result showing China's services sector created jobs at
the fastest pace in seven months in September as new business
Although the U.S. presidential election poses geopolitical
and economic uncertainties, many traders say the impact on China
"If Trump is elected, there would be more uncertainty. If
Clinton is elected, she would be tough on China. But whoever is
elected, the impact would be under control," said Charles Wang,
Chairman of Shenzhen-based Appleridge Capital Management Co.
He added that Hong Kong's stock market would be more
vulnerable to the election results than China's, which is
relatively closed due to strict capital controls.
News of the fresh property restrictions knocked the property
sector down 2.3 percent on Monday.
All other sectors rose, with healthcare and
resources shares leading the gains.
Shares in Baoshan Iron & Steel and Wuhan Iron
And Steel Co Ltd shot up 10 percent, the maximum
allowed, as trading resumed after the announcement of their
Baosteel will acquire Wuhan Steel in a deal that will create
the world's second-largest steel producer as part of Beijing's
push to overhaul the stricken industry.
The Hong Kong market is closed on Monday for a holiday.
The benchmark Hang Seng Index finished up 2.4 percent
last week, while the China Enterprises Index advanced
3.6 percent, their biggest weekly gains in four weeks.
(Reporting by Samuel Shen and John Ruwitch; Editing by Kim