SHANGHAI, April 1 (Reuters) - China stocks rose on Friday on expectations of more economic stimulus after data showed factory activity slumped at the fastest pace in two years in March, while tourism-related shares led the gains ahead of an upcoming holiday.

The CSI300 index rose 1.1% to 4,270.89 points at the end of the morning session, while the Shanghai Composite Index was up 0.6% at 3,272.40 points.

The Hang Seng index dropped 0.7% to 21,837.48 points. The Hong Kong China Enterprises Index lost 0.8% to 7,467.66.

** The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI), which focuses more on small firms in coastal regions, fell to 48.1 in March, broadly in line with the official PMI released on Thursday, as the domestic COVID-19 resurgence and the economic fallout from the Ukraine war weighed.

** China's commercial hub of Shanghai grounded to a halt on Friday after the government locked down most of the city's 26 million residents to stop the spread of COVID-19, even as official numbers showed a drop in cases for the second day in a row.

** To some extent, negative headlines have been priced in during the first quarter, said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co.

** Yang expects a potential rebound in the market in the second quarter.

** China's CSI300 Index tumbled 14.5% in the first three months of the year, its worst quarter since 2015.

** Government officials have vowed to roll out policies to stabilise the economy.

** Tourism and transportation stocks gained 4% and 5.2%, respectively, ahead of the Tomb Sweeping Festival holidays.

** Shanghai International Port Group jumped 10% after it forecast a 75.6% rise in net profit to 5.2 billion yuan ($819.90 million) for the first quarter.

** Banks rose 1.2% and consumer staples added 1.9%, while healthcare firms lost 1.4%.

** Tech firms listed in Hong Kong extended losses, dropping 1.7%, as concerns over U.S. delisting lingered. (Reporting by Shanghai Newsroom; Editing by Anil D'Silva)