SHANGHAI, Sept 1 (Reuters) - China shares rose on Friday, led by property stocks, as Beijing rolled out measures to support the housing sector, while factory activity in August surprised investors on the upside.

** China's blue-chip CSI300 Index climbed 0.5% by the lunch break, while the Shanghai Composite Index gained 0.2%. The Hong Kong market was closed due to typhoon Saola.

** China's central bank and financial regulator issued notices to ease some borrowing rules to aid homebuyers, including lowering the existing mortgage rate for first-home buyers and the down payment ratio in some cities, in latest efforts to revive the crisis-hit property market.

** Analysts said the move should improve sentiment around the property market.

** Following this, five of China's biggest banks cut interest rates on a range of deposits in a coordinated effort to ease pressure on their shrinking margins as lenders move to lower mortgage rates.

** China's CSI 300 Real Estate Index was up 2.3%.

** Meanwhile, China's factory activity surprisingly returned to expansion in August, with supply, domestic demand and employment improving, suggesting official efforts to revive growth might be having some effect.

** Energy and coal-related shares were up 2.1% and 3.6%, respectively.

** The market is also watching a key vote of embattled Chinese developer Country Garden. The company has delayed a deadline for creditors to vote on whether to postpone payments for an onshore private bond to Friday. (Reporting by Shanghai Newsroom; Editing by Sonia Cheema)