HK Hot Stocks -SMIC rallies, CNOOC leads gainers

HONG KONG, July 22 (Reuters) - At 0328 GMT, the Hang Seng Index .HSI came off lows to hover down 10.61 points at 22,522.29, helped by modest gains in HSBC Holdings (0005.HK) and China Mobile (0941.HK).

The China Enterprises Index .HSCE of top locally listed Chinese firms had fallen 0.9 percent.

Here are some stocks on the move:

*HSBC Holdings (0005.HK) climbed 0.4 percent after Bank of America joined rivals Citigroup, JP Morgan and Wells Fargo in beating analyst expectations of its first quarter earnings. The stock, which rallied 11.5 percent in the past three sessions, also benefitted from talk that China sovereign wealth fund CIC was looking to buy shares in Europe's largest bank.

*Semiconductor Manufacturing International Co. (SMIC) (0981.HK)(SMI.N) jumped nearly 16 percent on a news report that Datang Telecom group may buy a 20 percent stake in SMIC, the nation's biggest contract chip maker.

*Zhejiang Glass Co Ltd (0739.HK) was up 5.8 percent after rallying 13.6 percent earlier today. The company said its net profit for the first half of 2008 was likely to double owing to a relatively high return from its unit Qinghai Soda Ash Co Ltd. The company posted a 100.28 million yuan ($14.69 million) profit in the first half of 2007.

* Shares in Chinese PC maker Lenovo (0992.HK) tumbled 4.1 percent to HK$5.35 after U.S. computer giant IBM (IBM.N) sold a 1.3 percent stake in the company for around $77.3 million. IBM sold the shares at the bottom of a range of HK$5.19 to HK$5.36.

The stock also fell after JP Morgan downgraded Lenovo to neutral from overweight on weak Chinese demand and a slower ramp-up of its U.S. consumer business.

* Offshore oil producer CNOOC (0883.HK) gained 2.5 percent after fears that a tropical storm would hit U.S. offshore oil installations sent crude over $130 per barrel overnight.

* Higher oil prices ended the rally in refiners and airline stocks, with Sinopec Corp (0386.HK) giving up 1.6 percent and Cathay Pacific Airways (0293.HK) slipping 1.8 percent.

* Aluminium Corp of China (Chalco) (2600.HK), the country's largest producer of the metal, fell 2.8 percent after Goldman Sachs cut its rating on the stock to neutral from buy on Monday on expectations of another power tariff hike by Beijing.

The brokerage house also cut its target price on Chalco to HK$11 from HK$17. (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree and Jonathan Hopfner)