* SSEC +0.4%, CSI300 +0.9%, HSI -0.7% * HK->Shanghai Connect daily quota used 0.8%, Shanghai->HK daily quota used 2.3% * China vows to crack down on illegal securities activities SHANGHAI, July 7 (Reuters) - China shares rose on Wednesday, with the new-energy vehicle sector leading gains, as the government stepped up supervision of Chinese firms listed offshore and announced new measures to protect the rights of investors. ** At the midday break, the Shanghai Composite index was up 0.44% at 3,545.65 points while the blue-chip CSI300 index added 0.88%. ** Leading the gains, the sub-index tracking new-energy vehicle makers and suppliers jumped 5%, the rare earth sub-index surged 4.75% and the healthcare sub-index rose 2.68%. ** The smaller Shenzhen index was up 1.33%, the start-up board ChiNext Composite index was higher by 3.25% and Shanghai’s tech-focused STAR50 index was up 1.96%. ** China will upgrade law enforcement on illegal activities in the securities market such as financial fraud, insider trading and market manipulation, its cabinet said on Tuesday. ** The country will also step up supervision of Chinese firms listed offshore, days after Beijing launched a cybersecurity investigation into ride-hailing giant Didi Global Inc on the heels of its U.S. stock market listing. ** Chinese H-shares listed in Hong Kong fell 1.39% to 10,126.62, while the Hang Seng Index was down 0.74% at 27,865.25. ** The sub-index of the Hang Seng index tracking energy shares dipped 2.1%, while the IT sector fell 1.6%. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.35% while Japan’s Nikkei index was down 0.91%. ** The yuan was quoted at 6.4707 per U.S. dollar, 0.12% firmer than the previous close of 6.4788. (Reporting by Shanghai Newsroom) Our Standards: The Thomson Reuters Trust Principles.