SHANGHAI, Feb 8 (Reuters) - China shares rose on Thursday after Beijing appointed a veteran regulator as the new securities watchdog head and policymakers took measures to stabilise the sluggish stock markets.

** China's blue-chip CSI 300 Index was up 0.4% by the midday recess, on course for a fourth straight session of rebound, while the Shanghai Composite Index climbed 1.2%.

** Both indexes are on track for their biggest weekly gain since November 2022, as markets will be closed for the long Lunar New Year holiday from Friday.

** Hong Kong's Hang Seng Index, however, lost 0.9%, dragged by a 6.8% decline in Alibaba Group Holding, after the internet giant missed analysts' estimates for third-quarter revenue.

** China's cabinet has replaced Yi Huiman as chairman of the China Securities Regulatory Commission (CSRC) with Wu Qing, a veteran regulator with a reputation for tough action.

** "This unusual move signals more attention to capital market from top leaders," Jefferies analysts said in a note. "We remain cautious on 1 year horizon, but see rising chance of strong liquidity support for national team's stock purchase."

** Authorities have taken a slew of measures to rescue the tumbling market, including asking state-investors to buy funds directly to lift the market. Regulators have moved to curb short-selling.

** Most sectors rose following the new appointment, although data showed China's consumer prices fell at their steepest pace in more than 14 years in January while producer prices also dropped.

** Shares in companies with small-and-micro market capitalisation led the gains, with the CSI 1000 Index and the CSI 2000 Index up 4.8% and 5.5%, respectively. In previous weeks, these stocks were hit most badly during the market downturn.

** Industry-wise, stocks in real estate, information technology, new energy vehicle , and defence jumped more than 3% each to outperform other sectors.

** Foreign investors bought a net 5.3 billion yuan ($736.67 million) of Chinese shares so far on the day, a eighth straight session of net inflow.

** In Hong Kong, tech giants slipped 0.3%, dragged by Alibaba, as the company's plan to buy back $25 billion of its stock failed to drum up investor enthusiasm.

** Biotech firm Wuxi Apptec lost 8%, sending their yearly loss to 40%, amid lingering geopolitical concerns caused by a draft U.S. bill.

** Healthcare stocks listed in Hong Kong lost 0.7%. ($1 = 7.1945 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Kim Coghill and Mrigank Dhaniwala)