* Hong Kong lower as oil, metals stocks ease
* China advances on upbeat manufacturing data
* Yuzhou Property retreats on Hong Kong debut (Updates to midday)
By Jun Ebias and Claire Zhang
HONG KONG/SHANGHAI, Nov 2 (Reuters) - Hong Kong shares fell on Monday morning, as oil and metals stocks dropped on lower commodities prices, while Shanghai shares moved higher after data pointed to sustained industrial expansion in China.
China's key stock index rose 0.49 percent, bouncing from a drop of more than 2 percent in early trade, as auto and health-related shares gained.
The benchmark Hang Seng Index was down 1.72 percent, or 374.70 points, at 21,378.17 at midday. Turnover was HK$36.66 billion ($4.7 billion), versus midday Friday's HK$42.60 billion.
"There is no significant indication that the global economy will recover strongly, so investors in Hong Kong are taking profit," said Steven Lam, vice-president at Karl-Thomson Securities.
Chinese offshore oil and gas specialist CNOOC Ltd <0883.HK> shed 3.33 percent, while Jiangxi Copper slipped 1.99 percent.
Angang Steel was down 2.04 percent. PetroChina fell 1.87 percent.
Li & Fung declined 3.65 percent and Esprit Holdings lost 2.66 percent, as U.S. consumers' gloomy economic outlook weighed on exporters.
Chinese property developer Yuzhou Property was down 4.8 percent on its trading debut.
The China Enterprise Index of top locally listed mainland Chinese stocks was down 1.46 percent at 12,582.58.
Bucking the trend, Tencent Holdings, which operates popular online games in China, rose 2.26 percent on a rosy earnings outlook. Credit Suisse raised its target price to HK$153.60 from HK$131.60 and kept its "outperform" rating.
"Tencent is gaining share in both the e-commerce and payment markets," Credit Suisse said in a note on Monday, adding that its gaming and advertising revenue would continue to grow.
Nine Dragons was up 1.06 percent. The packaging and paper maker's plan to use proceeds from the sale of new shares to pay off debt would help lift profit, analysts said.
China Power International fell 1.83 percent. The company said Beijing had approved its plan to build a coal-fired generation unit in Sichuan province.
Chinese ingot and wafer maker Comtec Solar, which debuted in Hong Kong on Friday, extended its fall, down 8.08 percent at the midday break. The stock closed 5.7 percent lower on Friday on concerns that demand for its products would remain weak.
SHANGHAI HIGHER
The Shanghai Composite Index ended the morning at 3,010.552 points after sliding as far as 2,923.525, below the closely watched 125-day moving average now at 2,940 points.
The Nasdaq-style ChiNext market for start-up shares, which surged on its trading debut on Friday, ended mixed after 27 of its 28 shares fell by the 10 percent daily limit at the open on profit-taking.
Hospital services provider Aier Eye Hospital Group, one of the most actively traded shares on Chinext, fell 2.98 percent to 50.40 yuan.
The broader market initially took its cues from New York stocks, which on Friday posted their biggest one-day fall since July, but traders quickly shifted attention to the recovering domestic economy. HSBC's China Purchasing Managers' Index (PMI) for October, released in the morning, rose to an 18-month high of 55.4 from 55.0 in September, underscoring the strength of the manufacturing sector.
The official PMI, released on Sunday, rose to an 18-month high of 55.2 in October from 54.3. [ID:nPEK81136]
"The market opened lower with pressure from weakness overseas, but drew support from the positive PMI and firmer earnings," said Zhou Lin, senior analyst at Huatai Securities in Nanjing.
Auto shares rose, cheered by upbeat results. Chongqing Changan Auto gained 5.36 percent to 13.75 yuan after reporting a 145 percent rise in net profit. SAIC Motor Corp, China's largest carmaker, advanced 3.36 percent to 24.00 yuan after reoporting that third-quarter net profit jumped ninefold.
The Chinese daily Oriental Morning Post reported that SAIC may manufacture BMW's 7 series sedan in China.
Gaining Shanghai A shares outnumbered losers by 624 to 241, while turnover rose to 71 billion yuan ($10.40 billion) from Friday morning's 61 billion yuan.
Health-related shares rose after China's Premier Wen Jiabao warned about the spread of the H1N1 influenza.
Shenzhen Neptunus Bioengineering advanced by its 10 percent daily limit to 20.35 yuan.
Companies that may benefit from a proposed Walt Disney Co theme park in Shanghai outperformed. Shanghai Lujiazui Finance & Trade Zone Development rose 5.40 percent to 29.48 yuan. Shanghai Jielong Group Industry climbed its 10 percent daily limit to 18.57 yuan. (Editing by Chris Lewis)