China stocks gave up earlier gains on Thursday to close with a mixed bag, even after a private sector survey showed the country's factory activity unexpectedly swung to growth in May from decline in the previous month.


** The blue-chip CSI300 Index ended up 0.2%, while the Shanghai Composite Index finished flat.

** Hong Kong's benchmark Hang Seng slipped 0.1%, and the Hang Seng China Enterprises Index was down 0.2%.

** In comparison, other global shares rose amid receding bets for a U.S. rate hike this month and relief over the passage through the U.S. House of Representatives of a bill to suspend the federal debt ceiling.

** The Caixin/S&P Global manufacturing purchasing managers' index (PMI) rose to 50.9 in May from 49.5 in April, beating expectations of 49.5 in a Reuters poll, and a stark contrast to a deeper contraction activity seen in the official PMI released on Wednesday.

** Artificial Intelligence (AI)-themed stocks led the gains. Media firms advanced 2.2% and computer shares climbed 3.1%.

** AI firm iFLYTEK Co jumped 10% to hit the daily limit, after it was appointed by China's Ministry of Industry and Information Technology as a leader in a large language model working group.

** Broader market sentiment remained weak, as investors were worried about the sustainability of the economic recovery and market rebound.

** "We need more time to see whether the improvement would be sustained," said Zhou Hao, an economist at Guotai Junan International.

** "Further policy support is still required to boost domestic demand, we reckon a 10 bps MLF rate cut in June."

** A private survey showed China's new home prices fell for the first time in four months in May and home sales slumped, adding to pressure on a property market which is struggling to stabilize after a sharp slump.

** Hong Kong-listed mainland property developers declined 1.7%.

(Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu and Dhanya Ann Thoppil)