(Updates to close)
* HSI slips 0.8 pct, but up 1.7 pct this week
* CSI300 up 0.9 pct, jumps 3.4 pct for the week
* Chinese developers hit by Vanke's monthly sales decline
* Mainland investors chase 2012 winners, brokers strong
By Clement Tan
HONG KONG, May 4 (Reuters) - China shares ended their best week in 2-1/2 months with a flourish on Friday, extending April's strong performance as investors chased the year's winners in anticipation that market-boosting measures could be announced over the weekend.
Hong Kong markets were weaker, as Chinese developers took hits after the biggest player by sales posted its first monthly revenue decline in three. The Hang Seng Index slipped 0.8 percent, yet still recorded its best week in almost three months, up 1.7 percent.
The CSI300 Index, which tracks listings in Shanghai and Shenzhen and has more weighting on large cap stocks, gained 0.9 percent to end at 2,715.9, the highest since Nov. 15.
This week, it jumped 3.4 percent, compared with the 2.3 percent gain on the Shanghai Composite Index, pointing to the outperformance of larger caps, seen to be benefitting from moves by regulators to shore up the markets.
Helping boost markets on Friday was anticipation that a conference on financial innovation in Beijing this weekend could provide more good news for investors. They believe that one speaker will be China Securities Regulatory Commission (CSRC) Chairman Guo Shuqing, who might announce fresh measures to support the stock market.
The Chinese government's support and anticipation of more relaxation of rules on financial products "should boost markets more," said Alan Lam, Julius Baer's Greater China equity analyst.
A big part of this week's strength was down to Chinese brokerages after a slew of confidence-boosting regulatory measures over the last weekend. China's securities regulator said on Monday it would reduce transaction fees for trades on the Shanghai and Shenzhen stock exchanges.
The official Shanghai Securities News further reported on Wednesday that the country's securities watchdog is preparing tougher rules that will delist underperforming companies from the Shanghai and Shenzhen stock exchanges' main board.[ID:nL4E8G20CSž]
Kweichow Moutai, the largest manufacturer of a popular premium Chinese liquor, provided the biggest boost to the Shanghai index on Friday by jumping 3.2 percent to an all-time high. Another Chinese alcoholic producer, Wuliangye was up 2.3 percent.
In 2012, Kweichow Moutai has gained 21 percent. While mainland Chinese benchmarks have bled more than 30 percent in 2010 and 2011 combined, Kweichow Moutai soared 25 percent
Citic Securities, the largest listed brokerage in China, jumped more than 4 percent this week although it slipped 0.1 percent on Friday as investors took some profits.
CHINA VANKE SALES SPARK PROPERTY WEAKNESS
In Hong Kong, Chinese developers were hit after Shenzhen-listed China Vanke reported late on Thursday that its April sales fell 6 percent to 7.4 billion yuan ($1.2 billion) from the same period a year ago, snapping a two-month rise and renewing fears about a pivotal sector in the world's second-largest economy.
Investors will be looking to a batch of data next week for fresh clues. Beijing is expected to post April trade data on May 10 and inflation, industrial output and retail sales on May 11. Data for loan growth and money supply are expected between May 10 and 15.
On Friday, China Resources Land and China Overseas Land & Investment Ltd were among the top percentage losers among Hang Seng Index components, down 3.6 and 2.3 percent respectively.
In 2012, the Chinese property sector has broadly outperformed after taking the brunt of the slump last year, suggesting investors are expecting Beijing to loosen policies on the sector as growth slows in the world's second-largest economy.
China Overseas Land has surged 31 percent this year after two straight annual declines that have shaved one-fifth off its market cap, compared with the 14.4 percent gain on the Hang Seng Index this year.
"We remain concerned that the market in general seems to be too optimistic on the continued sales rebound and gradual loosening of the housing policy," said Credit Suisse China property analysts in a note to clients dated May 3.
They added there may be risks of a pull back in share prices for the sector after steep gains this year, while maintaining their sector-wide underweight rating. (Editing by Richard Borsuk)
