SHANGHAI, Aug 30 (Reuters) - China stocks were roughly flat on Wednesday, as the market is weighing geopolitical risks and factors that may affect the property market. Hong Kong shares were up.
** China's blue-chip CSI300 Index and the Shanghai Composite Index both edged up 0.1% by the lunch break. Hong Kong benchmark Hang Seng Index was up 0.6%.
** China's embassy in Washington on Tuesday defended its business practices after U.S. Commerce Secretary Gina Raimondo said U.S. firms told her that China had become "uninvestible."
** Any new developments between China and the U.S. are highly watched by investors. August has seen foreign capital net selling via the northbound trading link at over 83 billion yuan ($10.97 billion) so far, set to log the biggest monthly outflow on record.
** Semiconductor shares jumped, on speculations that Huawei's newly launched phones would be 5G compatible and would benefit companies on its value chain.
** HWA Create Corp rose as much as 20%.
** Shares in China's banking sector dropped on worries that a reduction in existing mortgage rates will dent the profitability of lenders already reeling from a worsening property sector crisis and slowing economy.
** Meanwhile, property developer stocks rose.
** China's southern city of Guangzhou issued a notice that it would ease mortgage curbs, allowing home buyers to enjoy preferential loans for first-home purchases regardless of their previous credit record.
** Market is monitoring closely Country Garden's new developments, including its half-year results due later in the day.
** Tech stocks traded in Hong Kong were up nearly 2%, but erased the gains by the lunch break, despite the Chinese American Depository Receipts (ADRs) traded higher in New York as online retailer Pinduoduo's earnings posted a positive surprise.
($1 = 7.2902 yuan) (Reporting by Shanghai Newsroom; Editing by Sohini Goswami)
