China stocks rise in volatile early trade

SHANGHAI (Reuters) - China's major stock indexes rose on Tuesday following reports of proposed reforms to strengthen the nation's financial regulatory system.

The CSI300 index <.CSI300> was up 1.2 percent at 3,229.69 points by 0142 GMT, after briefly dipping into the red, while the Shanghai Composite Index <.SSEC> rose 0.7 percent to 3,036.39.

The Hang Seng index <.HSI> in Hong Kong was up 0.6 percent at 20,006.95.

The State Council has set up a working group, headed by deputy secretary-general Xiao Jie, a former vice finance minister and tax chief, to prepare for upgrading the cabinet's financial department to bureau level, said a source close to the country's leadership.

China's cabinet is set to take on a bigger role in overseeing financial markets, as perceived missteps by existing regulators fuel concerns globally that Beijing may be losing its grip on policy as economic growth cools to its slowest in a quarter of a century.

(Reporting by Nathaniel Taplin; Editing by Kim Coghill)

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