* Hang Seng Index flat, off early gains
* New policy measures spur profit-taking in HK developers
* Shanghai market flat as weak energy issues weigh
* Standard Chartered to resume trading after midday break (Updates to midday)
By Vikram S. Subhedar and Farah Master
HONG KONG/SHANGHAI, Oct 13 (Reuters) - The property sector was firmly in focus on Wednesday, rising sharply in Shanghai on stabilising profits but sliding in Hong Kong after the local government announced fresh measures to stem property prices.
The benchmark indexes in Hong Kong and Shanghai were flat by the midday break.
Hong Kong's Hang Seng Index pared earlier gains, dragged lower by a decline in local developers as investors rushed in to book profit after strong recent gains.
In his annual policy address, Hong Kong Chief Executive Donald Tsang said the local government would temporarily restrict immigration based on property investment, a move aimed at stemming the impact of purchases by mainland Chinese in driving up prices.
The benchmark index, which opened 0.9 percent higher, pared all its gains, with real estate issues leading losses.
The property sub-index, which had risen 18 percent from the beginning of September through to Tuesday's close, fell 2.1 percent, led by Sun Hung Kai Properties Ltd, which fell 4.2 percent.
Most analysts put the move down to investors locking in some profit stocks that have seen gains of as much as 20 percent in the past five weeks.
"The share prices of all these property stocks have risen a lot in the past month," said Conita Hung, head of equity research at Delta Asia Financial Group, adding that the policy address could be an excuse to take profit.
Hong Kong property prices have risen 15 percent since the start of the year, after rising by a third last year, mainly fuelled by low interest rates and purchases by wealthy mainland Chinese facing policy tightening at home.
Agents that provide real estate services to new buyers, such as Midland Holdings Ltd also fell, with Midland down 4.2 percent.
"More than the developers, which should not be impacted too much by these new measures, service providers are probably going to feel the pain a little more," said Mark To, head of research at Wing Fung Financials.
Shares of Standard Chartered Plc are expected to resume trading after the midday break, following a suspension earlier pending an announcement.
The Financial Times reported that the emerging markets bank planned to raise as much as $11 billion through a rights issue to strengthen its finances.
WEAK ENERGY SHARES PEG BACK SHANGHAI
China's key stock index was flat by midday on Wednesday, with investors selling energy issues that had gained in the recent rally and buying into the property sector on strong earnings results and expectations of stable outlook for the year.
The Shanghai Composite Index was at 2,840.3 after closing at a five-month high on Tuesday, when it rose 1.2 percent.
The property sub-index jumped 3.3 percent, easily outperforming the broader market.
Chinese property counters, big laggards along with banks in a market that is one of world's worst performing this year, have seen renewed interest as earnings have stabilised, fears of fresh property controls waned and as the chance of rise in interest rates remains slim.
"There is a stable outlook of monetary policy for the rest of the year with no expectations of interest rate rises. This has had the biggest impact on the property sector," said Zhang Gang, analyst at Central Securities.
China Vanke Co Ltd, the country's largest listed developer, rose 6.4 percent after preliminary estimates showed its property sales in September rose by 160 percent from a year earlier.
Poly Real Estate Group Co Ltd jumped 7 percent after it said sales for the first nine months of the year grew 28 percent.
The Shanghai Composite is down 13 percent this year sliding after government measures to clamp down on bank lending and tame property speculation took their toll.
The index was little changed after data showing China's trade surplus narrowed to a five-month low in September.
Energy companies dropped, with China Shenhua Energy Co Ltd down 2.4 percent and Top Energy Co Ltd fell 2.8 percent, with investors rotating out of the sector and into developers. (Additional reporting by Sui-Lee Wee in HONG KONG; Editing by Chris Lewis)