HK shares extend gains to 3 pct led by HKEx

HONG KONG, June 10 (Reuters) - Hong Kong shares extended gains to rise more than 3 percent on Wednesday afternoon, rebounding from two days of losses, but Li & Fung (0494.HK) trailed on news of German retailer Arcandor's (AROG.DE) insolvency.

By 0635 GMT the benchmark Hang Seng Index .HSI had risen 580.18 points to 18,638.67, with bourse operator Hong Kong Exchanges & Clearing (0388.HK) in the lead following a broker upgrade.

The China Enterprises Index .HSCE of top mainland companies was up 4.3 percent at 10,953.16.

(Reporting by Parvathy Ullatil; Editing by Jonathan Hopfner)