* SSEC +0.33%, CSI300 +0.16%, HSI +1.77%
* Foreign investors net buyers of A-shares for fourth straight day
* Evergrande snaps 3-day losing streak as legal disputes solved
SHANGHAI, July 22 (Reuters) - China shares rose on Thursday as gains in financials and materials firms overcame a slump in healthcare stocks and as foreign investors extended net buying through the Stock Connect scheme into a fourth session.
** By the midday break, the Shanghai Composite index was up 0.33% at 3,574.30 points.
** China's blue-chip CSI300 index was up 0.16%, with its financial sector sub-index higher by 1.36%, the CSI all share materials gaining 1.86% and the real estate index up 1.23%.
** The healthcare sub-index slumped 3.09% after three days of strong gains.
** Refinitiv data showed foreign investors were net buyers of A-shares through the Northbound leg of the Stock Connect programme , the fourth straight day of net purchases.
** Chinese H-shares listed in Hong Kong rose 1.65% to 9,993.01, while the Hang Seng Index was up 1.77% at 27,705.25.
** Sentiment in the property sector was boosted after developer China Evergrande Group said it had solved legal disputes with China Guangfa Bank and that the two sides would deepen business cooperation, easing investor concerns that sparked a three-day sell-off.
** Evergrande shares surged 9.25% but were down more than 19% so far in the week. The Hang Seng property sub-index rose 1.84% and the CSI300 real estate sub-index climbed 1.23%.
** But in a sign of continuing troubles for China's most indebted developer, HSBC and Standard Chartered are declining to extend new loans to buyers of property in two uncompleted Hong Kong residential projects developed by Evergrande, three mortgage brokers said on Wednesday.
** The smaller Shenzhen index was up 0.19%, the start-up board ChiNext Composite index was weaker by 0.85% and Shanghai's tech-focused STAR50 index was up 0.1%.
** The yuan was quoted at 6.4664 per U.S. dollar, 0.03% firmer than the previous close of 6.4685.