HK, Shanghai shares rise; gold counters gain

* Hong Kong stocks gain on bargain hunting

* China shares at near three-month high

* Gold counters rise on higher gold prices

(Updates to midday)

By Jun Ebias and Claire Zhang

HONG KONG/SHANGHAI, Nov 4 (Reuters) - Hong Kong shares on Wednesday
rebounded from a two-day fall as investors hunted for bargains, while Chinese
stocks rose to their nearly three-month intraday high, led by metals shares.

China's key stock index was up 0.6 percent at midday, but shares that may
benefit from the building of a Shanghai Disney theme park were hit by
profit-taking after the government approved it.

In Hong Kong, the benchmark Hang Seng Index .HSI was up 1.63 percent, or
346.67 points, at 21,586.73 at midday. The index had fallen 2.36 percent in the
last two sessions.

But turnover remained low at HK$33.23 billion ($4.3 billion), versus midday
Tuesday's HK$33.10 billion, reflecting the market's wariness ahead of the
outcome of the Federal Reserve meeting later on Wednesday and Friday's U.S
payrolls data.

"The upside is quite limited and the market is very cautious," said Peter
Lai, director at DBS Vickers.

"Investors are waiting for the statement after the FOMC meeting and the
release of the unemployment data. These are the main triggers that will drive
the market in the coming sessions."

While the Fed is expected to leave rates unchanged, the market wants to hear
what the policymakers will say about the economic outlook. [.N]

Chinese gold miners rose as gold prices settled near their record highs.
Zijin Mining (2899.HK) was up 4.89 percent and Realgold Mining (0246.HK) was
4.26 percent higher. [ID:nT151720]

In Shanghai, Shandong Gold (600547.SS) climbed 3.13 percent to 70.49 yuan.

Asia Resources Holdings (0899.HK) gained 7.27 percent. The firm said it
would buy a 55 percent stake in a mining and iron ore trading venture in
Indonesia's East Java province for HK$577.5 million ($74.52 million).

Consumer goods exporter Li & Fung (0494.HK) advanced 3.29 percent. HSBC
raised its target price on the stock to HK$35 from HK$31 and its rating to
"neutral" from "underweight."

Oil producer PetroChina (0857.HK) was up 3.33 percent. Credit Suisse raised
its rating on the stock to "neutral" with a target price of HK$10.10 a share, as
PetroChina is seen to benefit before other oil firms from gas price reform in
China.

Banks rebounded, with China Construction Bank (0939.HK) up 2.27 percent and
Bank of China (3988.HK) was 2.05 percent higher.

The China Enterprise Index .HSCE of top locally listed mainland Chinese
stocks rose 2.37 percent to 12,796.74.

China Unicom (0762.HK) rose 3.37 percent after it signed up over one million
3G subscribers. [ID:nPEK156986]

Dongfeng Motor Group (0489.HK) was up 9.71 percent after announcing a 4.63
billion yuan profit in the first nine months.

TCL Communications Technology (2618.HK) fell 0.8 percent. The mobile handset
maker said it planned to raise HK$357.5 million by offering shares at HK$1 each.

SHANGHAI UP

The Shanghai Composite Index .SSEC ended at 3,132.934 points, as optimism
over the outlook for economic recovery has encouraged buying.

Gaining Shanghai A shares outnumbered losers by 592 to 285, while turnover
remained active at 86 billion yuan ($12.6 billion) although down from Tuesday
morning's 96 billion yuan.

The World Bank on Wednesday raised its forecasts for Chinese growth this
year and projected a slightly faster pace of expansion in 2010, but it said
Beijing did not need to embark on major policy tightening at this stage.
[ID:nPEK132888]

"The index could rise gradually amid volatility, with occasional
consolidation," said Chen Huiqin, senior analyst at Huatai Securities in
Nanjing. He expected the index to move between 2,950 and 3,150 points in coming
days.
Shares that may benefit from plans for a Shanghai Disney theme park or that
own land in the Pudong area where it is expected to be built fell after Beijing
gave the official nod to the project. Rumours that official approval was
imminent had lifted the shares in recent days.

Walt Disney Co (DIS.N) and the Shanghai government said on Wednesday they
were in detailed talks on a deal to build a theme park in Shanghai after getting
the nod from the central government. [ID:nN03523281]

Lujiazui Finance (600663.SS) sank 2.45 percent to 29.01 yuan, after surging
31 percent from the beginning of October to Tuesday's close.

Jielong Group (600836.SS) lost 3.82 percent to 17.89 yuan after saying on
Tuesday that a major shareholder had cut its stake. It had gained 53 percent
since the start of October.

Aluminum shares soared, with Aluminum Corp of China (601600.SS) advancing
5.59 percent to 14.93 yuan.

Property shares were weak, with China Vanke (000002.SZ) sinking 1.51 percent
to 11.76 yuan. The official Shanghai Securities News reported that some Chinese
banks have tightened their residential mortgage lending on expectations that
Beijing may raise rates.

Reports of more share supplies also hit the market.

The official newspaper said Fujian-based Industrial Securities may soon
apply to the China Securities Regulatory Commission to launch a domestic initial
public offering. Two firms also won approval to go public on the ChiNext market,
the country's Nasdaq-style second board.

(Editing by Ken Wills)