China and Hong Kong stocks rose on Tuesday led by property shares as a potential buyout of a developer helped lift sentiment, while investors continued to watch Sino-U.S. tensions for any signs of easing.

** China's blue-chip CSI300 Index climbed 0.5% by the lunch break, while the Shanghai Composite Index gained 0.9%. Hong Kong benchmark Hang Seng Index was up 1.6%.

** "The (Hong Kong) market has been oversold below 19,000 and there's also some chance for the market to get some window dressing before half-year end," said Steven Leung, executive director of institutional sales at broker UOB Kay Hian in Hong Kong.

** Property developer New World Development's NWS Holdings hit a two-year peak on a buyout offer at premium.

** "If we think of the privatisation... people speculate the Net Asset Value (NAV) discount on the property developers is getting too big. It's pure speculation but there may be some more similar restructurings at other developers to enhance their NAV," Leung said.

** Mainland property shares listed in Hong Kong jumped more than 4%, while properties and construction stocks were up 2.7%.

** China's Premier Li Qiang told delegates that globalisation remains intact despite some setbacks at a World Economic Forum summit in Tianjin on Tuesday.

** U.S. Treasury Secretary Janet Yellen plans to visit China in early July for the first high-level economic talks with her new Chinese counterpart, a Bloomberg reporter said in a tweet on Monday.

** Meanwhile, tech stocks traded in Hong Kong soared 2.2%.

** Tourism stocks in China rose despite the domestic tourism revenue during the three-day Dragon Boat Festival is still below 2019 pre-pandemic levels. (Reporting by Shanghai Newsroom; Editing by Nivedita Bhattacharjee)