Hong Kong shares close up 0.5 pct as retail sector rebounds

HONG KONG, June 27 (Reuters) - Hong Kong shares ended higher in volatile trade on Thursday, led by a bounce in retail stocks as investors hunted for bargains after recent market turmoil sparked by a cash squeeze in China.

The Hang Seng Index closed up 0.5 percent at 20,440.08, its highest close in a week. The China Enterprises Index of the top Chinese listings in Hong Kong ended down 0.1 percent.

The Shanghai Composite Index ended down 0.1 percent at 1,950.01 points while the CSI300 of the leading Shanghai and Shenzhen A-share listings dropped 0.4 percent, hovering around its lowest since December 2012.

HIGHLGHTS:

* China shares reversed early gains and ended lower on Thursday, restraining Hong Kong markets as sentiment remained fragile. Investors opted to take profits after recent gains.

* Traders said "window-dressing" buying from fund managers ahead of the half-year gave markets a boost, with retailers strong after a recent sell-off. Shares of jewellery retailer Chow Tai Fook Jewellery Group Ltd surged 4.9 percent, after the stock plunged to a record low on Tuesday.