China stocks extended their rally on Wednesday as investors awaited more substantial market rescue measures after Beijing signalled that it was ramping up efforts to support its sagging markets.

Hong Kong shares, however, ended lower, indicating investors are still assessing the effectiveness of the policy support.

** The blue-chip CSI 300 Index rose 1%, advancing for the third straight day, while the Shanghai Composite Index grew 1.4%.

** Hong Kong's Hang Seng Index eased 0.3%, and the Hang Seng China Enterprises Index lost 1%.

** China's new yuan loans likely surged in January from the previous month as the central bank moved to shore up a patchy recovery in the world's second-largest economy, according to a Reuters poll.

** Chinese authorities have announced a raft of measures to aid stock markets in the past few days after domestic stocks plunged to five-year lows last week.

** Some of the measures include curbs on short selling and state fund Central Huijin Investment's expanded stock buying.

** The small-cap index CSI 500 and CSI 1000 rebounded 6.3% and 4.5%, respectively, following the widened stock-buying support by the state fund, dubbed the "national team".

** "The recent market turmoil may prompt more decisive and quick moves by the national team to help restore confidence and prevent a self-fulfilling cycle," HSBC economists said in a note.

** Most sectors were up in the mainland market, with chemical firms and the healthcare sector leading the gains, rising 4.4% and 3.9% each.

** Wuxi AppTec's Shanghai-listed shares jumped 5.7%, while its Hong Kong shares rose 5% after a U.S. draft bill targeting Chinese biotech giants showed an update that the number of co-sponsors dropped to 0 from 6. Shenzhen-listed BGI Genomics surged 9.1%.

** Luca Paolini, chief strategist at Pictet Asset Management, said Chinese stocks are not particularly bright despite the low valuations as investors doubt Beijing's willingness to deliver large-scale fiscal support to revive the stock market.

** Hong Kong-listed Chinese tech firms retreated 1.6% at close after a 7% rally in the previous session. (Reporting by Summer Zhen; Editing by Janane Venkatraman and Sonia Cheema )