SHANGHAI, July 3 (Reuters) - China stocks rose on Monday amid hopes of more policy easing after the country's central bank said it would implement prudent monetary policy in a "precise and forceful manner" to support economic growth and employment.
** China's blue-chip CSI300 Index rose 1.4% and the Shanghai Composite Index added 1.3% by the lunch recess.
** Hong Kong's benchmark Hang Seng Index climbed 1.7%, and the Hang Seng China Enterprises Index advanced 2.2%.
** The People's Bank of China (PBOC) will make better use of aggregate and structural policy tools to stabilise growth, employment, effectively support domestic demand, it said on Friday.
** "(The) PBOC pledged to intensify countercyclical adjustment to support domestic demand, boost consumption and build a virtuous circle of economic growth," said Goldman Sachs in a note. "We continue to expect a 25bp RRR cut and a 10bp additional policy interest rate cut in the rest of the year to facilitate economic growth."
** China's factory activity slowed in June as the Caixin manufacturing survey showed a dip to 50.5, from 50.9 in May. That slightly beat market forecasts of 50.2, but still underlined the weakening trend seen in other surveys.
** Tourism stocks jumped more than 4%, automobiles climbed 3.7%, while shares in consumer staples, energy added 1.8% each.
** Investors are closely watching the development of China-U.S. relations as U.S. Treasury Secretary Janet Yellen will travel to Beijing from July 6-9 for meetings with senior Chinese officials on a broad range of issues.
** Tech giants listed in Hong Kong advanced 3.2%. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)
