SHANGHAI/HONG KONG, March 27 (Reuters) - Chinese bank

stocks climbed in Hong Kong on Friday after Reuters reported

that regulators are considering easing shareholder restrictions

to broaden options for lenders seeking to raise capital.

The National Financial Regulatory Administration may allow

some bank shareholders to become major investors - defined as

owning stakes of 5% or more - in up to two additional banks, on

top of a current limit of two, people with knowledge of the

matter told Reuters on Thursday.

A change in the rule could prompt banks to issue more shares

either privately or in the open market.

The regulator did not respond on Thursday to a faxed request

for comment on potential rule changes.

Industrial and Commercial Bank of China (ICBC)

rose 1.2% in the afternoon trade, with China Construction Bank

(CCB) and Postal Savings Bank of China (PSBC)

also up more than 1%.

The broader Hang Seng Mainland Banks Index added

0.6%.

The potential rule change would have "a positive impact on

China banks," Citi said in a client note.

It would accelerate loan growth, drive management incentives

to boost earnings and share prices, and prod incremental buying

from institutional investors including insurers, Citi said.

Easing restrictions "could broaden the investor base for

China banks, and would thus be positive for the sector in

general," JPMorgan said in a report.

Ping An Insurance (Group) Co of China

has banks in its portfolio whose shares were performing better

than peers on Friday. The insurer's stock rose 0.6% in Hong

Kong.

Ping An will "support and look forward to further enhancing

our investment returns in the financial industry and other

sectors under supportive regulatory policies," Co-CEO Michael

Guo said at a post-earnings press conference on Friday.

The insurer will maintain close communication with

regulators and will actively study the impact of any new policy

once it is clearly rolled out, examining what strategic

adjustments should be made to its investments, Guo said.

The conglomerate stepped up investment in banks last year

but its controlling stake in Ping An Bank means it

cannot become a major shareholder in other lenders.

Relaxing shareholder rules would "potentially allow Ping An

Group to hold more than 5% in addition to its share in its

subsidiary, Ping An Bank," JPMorgan said.

JPMorgan said potential beneficiaries could include Ping An

portfolio lenders such as ICBC, CCB, PSBC and China Merchants

Bank .

These four banks report earnings later on Friday.