UPDATE 1-ICBC says no acquisition talks with Wing Hang

* Wing Hang shares up 9 pct despite ICBC denial of tie-up

* Chinese banks seen keen to buy small HK banks - analysts (Adds analysts comment)

By Xie Heng and Alison Leung

BEIJING/HONG KONG, June 26 (Reuters) - China's ICBC (1398.HK), the world's largest bank by market value, on Friday denied rumours it is in talks to buy Wing Hang Bank (0302.HK), a small Hong Kong bank.

Wing Hang shares were up 9 percent at midday on talk that major shareholders may sell the bank, despite a denial by Industrial and Commercial Bank of China (601398.SS), brokers said.

The shares posted their biggest gain in nearly three months on Thursday, on rumours about a possible acquisition by ICBC, DBS said in a note on Friday.

There was also talk ICBC could buy Wing Hang and later inject it into its Hong Kong arm, ICBC (Asia) 0349.HK, analysts said.

"There are no such talks," ICBC president Yang Kaisheng told Reuters.

Chinese banks are keen to buy small banks in Hong Kong to give them a presence in the city that has long been a gateway for overseas investment into China.

"Hong Kong could also serve as a platform for going international," said Kim Eng banking analyst Ivan Li.

Some Chinese banks still have no presence in Hong Kong, including Agricultural Bank of China [AGBKC.UL], China Everbright Bank and China Minsheng Banking Corp (600016.SS), which is seeking a listing in Hong Kong.

"Hong Kong is still one of the major financial centres in the world, and valuations (of local banks) are more reasonable now while the market is stable as well," he said.

Last year, China Merchants Bank (3968.HK), China's sixth-largest lender, elbowed out Australia and New Zealand Banking Corp (ANZ.AX) and ICBC to buy control of Wing Lung Bank for $4.66 billion.

Analysts expect the deal to trigger further bids for small Hong Kong banks.

Family-owned Wing Hang Bank, with a market value of HK$21 billion ($2.71 billion), was a likely acquisition target among Hong Kong banks, they said.

China Life (2628.HK) apparently failed in an attempt to buy 10 percent of Wing Hang last August because it did not want to make a general offer, according to an announcement from the city's stock regulator. ($1=HK$7.749) (Additional reporting by Fion Li; Editing by Chris Lewis)