(Updates to market close)

SHANGHAI, April 15 (Reuters) - China stocks had a good

start to the week, with major indexes closing higher on Monday

as investors interpreted the new guidelines on the country's

capital market as a positive signal for the stock market. Hong

Kong shares declined.

China's securities regulator issued draft rules on Friday to

strengthen the supervision of company listings, delistings and

computer-driven programme trading, in a move to improve the

stock market and protect investors' interests.

UBS strategist Lei Meng believes that the updated policies

would fundamentally guide the long-term healthy development of

the capital market, improve the quality of listed companies and

boost market confidence.

** At the close, the Shanghai Composite index was up

1.26% at 3,057.38.

** The blue-chip CSI300 index was up 2.11%, with its

financial sector sub-index higher by 1.86%, the

consumer staples sector up 2.77%, the real estate

index up 0.21% and the healthcare sub-index

up 1.08%.

** The smaller Shenzhen index ended down 0.29% and the

start-up board ChiNext Composite index was higher by

1.852%.

** Around the region, MSCI's Asia ex-Japan stock index

was weaker by 0.79%, while Japan's Nikkei index

closed down 0.74%.

** At 0747 GMT, the yuan was quoted at 7.2386 per

U.S. dollar, 0.02% weaker than the previous close of 7.2372.

** At the close of trade, the Hang Seng index was down

121.23 points or 0.72% at 16,600.46. The Hang Seng China

Enterprises index fell 0.39% to 5,856.44.

** The sub-index of the Hang Seng tracking energy shares

rose 1.6%, while the IT sector dipped 1.23%,

the financial sector ended 0.5% lower and the property

sector dipped 0.89%.

** The top gainer on the Hang Seng was Lenovo Group Ltd ( LNVGF )

, which gained 2.64%, while the biggest loser was Chow

Tai Fook Jewellery Group Ltd ( CJEWF ), which fell 7.92%.