SHANGHAI, Sept 22 (Reuters) - China stocks bounced off 10-month lows on Friday on hopes of improving growth, but seven consecutive weeks of foreign outflows underscored lingering economic and geopolitical concerns toward the country. Hong Kong stocks also rebounded amid buoyant Asian markets.
** China's bluechip CSI300 Index rose 1% by the lunch break, after touching the lowest level since Nov. 4, 2022. The Shanghai Composite Index was up 0.8% and Hong Kong's Hang Seng benchmark gained 1.2%.
** China stocks gave up all the gains from the rally triggered by Beijing's Aug. 28 stamp duty cut, but some see support from signs of economic improvement.
** "There has been significant policy support (in China) in the past weeks in the property and financial sectors," said Value Partners investment director Kelly Chung, adding that the firm expects recovery to pick up steam in the fourth quarter.
** Goldman Sachs said in a note on Friday that the mostly better-than-expected August data provided tentative signs that growth and inflation have bottomed out, but also flagged risks from the property sector. "We continue to expect that sequential growth will improve from Q2 to H2."
** However, money has been flowing out of mainland China stocks via the Connect scheme for seven weeks in a row, reflecting lingering concerns over China's economic health and Beijing's tensions with the West
** Recent bank forex purchase and settlement data showed $75.9 billion worth of outflows under the capital and financial account during the first eight months of the year.
** In the latest sign that some global investors are avoiding China, asset manager Vontobel said it was launching an emerging markets ex-China equity fund, responding to growing demand for such a strategy.
** Most sectors in China rose on Friday. Tech-focused STAR 50 Index jumped 1.7%.
** In Hong Kong, the Hang Seng Tech Index climbed 2.4%, but an index tracking mainland developers lost 0.2%. Ratings agency Moody's on Thursday revised its outlook on four Chinese real estate firms to "negative" from "stable". (Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)
