SHANGHAI, Sept 30 (Reuters) - China stocks rose on Thursday despite data showing weaker-than-expected September factory activity, as power-intensive sectors rebounded after Beijing stepped up efforts to quell power shortage fears. Tech stocks dragged down Hong Kong shares on China’s plan to tighten its grip on the algorithms technology companies use to attract users. The CSI300 index rose 0.5% to 4,857.53 by the end of the morning session, while the Shanghai Composite Index gained 0.4% to 3,549.46. The Hang Seng index dropped 0.9% to 24,450.73. The Hong Kong China Enterprises Index lost 1.1% to 8,663.46. ** China’s factory activity unexpectedly shrank in September as high raw material prices and power cuts pressured manufacturers in the world’s second-largest economy, while the services sector returned to expansion as COVID-19 outbreaks receded. ** Stocks hit by the recent power crunch rebounded as China stepped up to commit coal supply ahead of the winter season. ** The power-intensive sectors, non-ferrous metal , steel and chemicals, rose between 1.6% and 2.7%. ** The real estate sub-index gained 0.8% after China’s central bank said financial institutions should maintain a stable and healthy development of the property market and protect consumer rights. ** Shares of new energy vehicles surged 4.7%. ** Consumer staples added 0.8% as China welcomes the week-long National Day holiday starting from Oct. 1, traditionally a peak season for consumption. ** In Hong Kong, the benchmark stock index was dragged down by tech shares, with the Hang Seng Tech Index down 1.8%. ** China’s cyberspace watchdog and other government bodies said on Wednesday they would set up governance rules for algorithms in around three years. ** Index heavyweight Alibaba Group tumbled 4.3%, the second-biggest intraday decliner on the Hang Seng Index. ** Debt-laden China Evergrande Group swung wildly in morning trading and was down more than 4% by the noon, as the company looked set to miss its second bond interest payment in a week. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)