China stocks wobble ahead of trade data; property shares soar

** In a commentary on Wednesday, the state-backed Securities Times called for the removal of restrictions on property selling and buying, as well as selling price limitations in most non-tier 1 cities. ** Hong Kong-listed mainland property developers jumped 3.6% as investors bet on more easing measures for the sector.

China and Hong Kong shares clawed back some early losses to close largely flat on Wednesday as investors awaited trade data for clues about the health of the world's second-largest economy, while property stocks surged on talk of further easing. ** China's blue-chip CSI 300 Index ended 0.22% lower, while the Shanghai Composite Index rose 0.12%.

** Hong Kong's Hang Seng Index was flat, and the Hang Seng China Enterprises Index climbed 0.11%. ** China is set to release its August trade data on Thursday. Both exports and imports are expected to further contract on a year-on-year basis, but at a slower pace.

** This will follow a notable decline in the August Caixin/S&P Global services purchasing managers' index published on Tuesday, indicating that bigger stimulus is needed to revive the economy. ** China's current economic woes are caused by both cyclical and structural factors, and require measures on both fronts, said Wang Tao, chief China economist at UBS.

** "To put the economy on a stronger recovery path, the most urgent task is to prevent property activities from sliding further," she said, suggesting a further relaxation in purchasing restrictions and more support for property developers. ** In a commentary on Wednesday, the state-backed Securities Times called for the removal of restrictions on property selling and buying, as well as selling price limitations in most non-tier 1 cities.

** Hong Kong-listed mainland property developers jumped 3.6% as investors bet on more easing measures for the sector. ** Some leading private developers soared, with China Evergrande and Sunac China up 83% and 68% respectively.

** The property sector rally also comes as Country Garden made interest payments on U.S. dollar bonds this week hours ahead of a grace period deadline, pulling back from the brink of default. ** Heavyweight tech firms listed in Hong Kong dipped 0.4%.

** In mainland A-shares, the CSI Anime Comic Game sub-index fell more than 2% to lead the decline. ** Semiconductor shares jumped 2.7% after Reuters reported China plans to launch a new $40 bln state fund to boost its chip industry.