China stocks rebounded on Thursday on strong foreign inflows, with overseas investors snapping up big-cap Chinese companies as policy expectations and the market's low valuation offered attractive opportunities.

 

** The blue-chip CSI 300 Index jumped 1.9%, set to log the biggest gain in five months and the Shanghai Composite Index added 1.1%.

** Hong Kong's Hang Seng Index surged 1.5%, and the Hang Seng China Enterprises Index climbed 1.8%.

** The broad Asian shares also touched five-month highs as market wagers on ever-more aggressive rate cuts extended a huge rally in U.S. stocks and bonds, but also left plenty of scope for disappointment next year.

** Foreign investors bought a net 11.3 billion yuan ($1.59 billion) of Chinese stocks via the Stock Connect so far on the day, on course to book the biggest daily inflow in five months.

** In mainland markets, new energy stocks jumped 6% to lead the gains, while shares in real estate developers, consumer staples and tourism firms rose between 2% and 3%.

** "In the market, valuation and sentiment indicators are all at record low levels," said Huajin Securities in a note, adding there is limited room for further decline.

** The broker said markets expected possible rate cuts early next year, while recent data showing double-digit gains in China's November industrial profits also helped sentiment.

** China will strive to expand domestic demand, ensure a speedy economic recovery and promote stable growth, according to an interim report on China's 14th five-year plan published by parliament on Wednesday.

** Tech giants listed in Hong Kong gained 2.1%, with Meituan up 4.3%. The Hang Seng Mainland Properties Index advanced 3%. ($1 = 7.1184 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)