China stocks rebounded on Thursday after the securities regulator announced further curbs on short-selling to bolster market sentiment. Hong Kong stocks also jumped.

The China Securities Regulatory Commission said on Wednesday that securities re-lending - in which brokers borrow shares for clients to short sell - would be suspended, while margin requirements would be raised for short-sellers.

The measures came after a disappointing June consumer inflation print further dampened stock market performance.

** By the midday break, the Shanghai Composite index was up 0.77% at 2,961.99 points, while the blue-chip CSI 300 index climbed 0.98%.

** The CSI's financial sector sub-index fell 0.75%, while consumer staples, real estate and healthcare rose between 1.73% and 3.07%.

** New energy stocks advanced 3.8% to lead the gains.

** Chinese H-shares listed in Hong Kong rose 1.44% to 6,341.35, while the Hang Seng Index was up 1.54% at 17,740.44.

** The smaller Shenzhen index was up 2.03%, the start-up board ChiNext Composite index rose by 1.98% and Shanghai's tech-focused STAR50 index climbed 0.83%​.

** The Hang Seng energy index edged up 0.1% while the IT sector rose 1.6%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.18% while Japan's Nikkei index was up 1.05%.

** The yuan was quoted at 7.2714 per U.S. dollar, 0.06% firmer than the previous close of 7.276. (Reporting by Summer Zhen; Editing by Varun H K)