SHANGHAI, Aug 29 (Reuters) - China stocks rose on Tuesday, extending gains from the previous session after Beijing introduced a package of measures to boost investor confidence over the weekend, including a stamp duty cut on stock trading.
** China's blue-chip CSI 300 Index rose 1.5% by the midday recess, while the Shanghai Composite Index climbed 1.4%.
** Hong Kong's Hang Seng Index added 2% and the Hang Seng China Enterprises Index jumped 2.3%.
** The measures also include slower pace of initial public offering, further regulations on major shareholders' share reductions, and lower margin financing requirements.
** Analysts say the markets-focused policies could boost investor confidence for a short term, but it's hard to revive a slowing economy. On Monday, the CSI 300 index erased most of the strong opening gains at close.
** On Tuesday, most sectors rose, with artificial intelligence, semiconductors jumping more than 3.5% to lead the gains.
** Shares in healthcare and consumer discretionary added more than 2% as well. In Hong Kong, tech giants and mainland property developers climbed more than 2.5% each.
** "Stamp-duty reductions and new-listing halts have in the past provided only a temporary bump to markets, not a fundamental turnaround," said Wei He, China economist at research firm Gavekal Dragonomics. "A sustained market rally is unlikely without substantially more stimulus to bolster economic growth and stabilize the property sector."
** Foreign investors bought a net 3.8 billion yuan ($521.68 million) of Chinese stocks via Stock Connect, after selling in 15 out of 16 previous sessions.
** The Bank of America said the next 2-3 weeks are an important window for policy actions. China's economy and markets are expected to see more downward pressure in the next two quarters, without material easing measures in near term, it added. ($1 = 7.2841 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)
