HK shares regain 0.8 pct; Shanghai near 11-mth high

* Shanghai stocks close near 11-month high

* Hong Kong shares seen rallying after mid-year

* China, U.S. stimulus measures boost market liquidity (Updates to close)

By Nerilyn Tenorio & Claire Zhang

HONG KONG/SHANGHAI, June 19 (Reuters) - Hong Kong shares snapped a four-day losing streak with a 0.81 percent recovery on Friday, on encouraging U.S. economic data, but trading remained cautious ahead of mid-year business and economic trends.

Chinese stocks rose 0.93 percent in active trade to their highest close in nearly 11 months, with financial firms and drugmakers strong after China resumed initial public offerings following a nearly 10-month suspension, starting with a small IPO.

HK RALLY SEEN IN JULY

The benchmark Hang Seng Index .HSI finished up 144.27 points at 17,920.93, off an intraday high of 18,015.11 and still 5.1 percent below the week-earlier level of 18,889.68.

Kenny Tang, research head at Redford Securities, said he saw the index consolidating around the 18,500 level before a rally in July, with window-dressing by traders providing underlying support through the rest of June.

"The U.S. market failed to provide a clear direction for us today," Tang said. "But we may see more window-dressing at current levels and ahead of a rally. We may see a rally in July on fund inflows, as money supply may be boosted by the central banks in China and the U.S. as part of their stimulus measures for the economy."

The China Enterprises Index .HSCE of top mainland companies gained 0.84 percent or 87.54 points to end at 10,509.85

Turnover dropped to HK$62.9 billion from Thursday's HK$63.64 billion.

Hong Kong Exchanges & Clearing (0388.HK) CEO Paul Chow on Thursday said the exchange would consult the market about launching a new derivative contract called "flexible options" in September or October. With the new product, HKEx aims to draw 10 percent of turnover on the over-the-counter market to the HKEx platform, Chow said.

Top banks bounced back from recent falls, with China Construction Bank (0939.HK) advancing 3.8 percent and ICBC (1398.HK) regaining 1.2 percent.

Oil refiner Sinopec Corp (0386.HK) rose 2.5 percent to HK$5.65, off a high of HK$5.79 as oil rose towards US$72 per barrel on Friday, extending its gains of a day earlier on bullish U.S. economic data and supply concerns in OPEC member Nigeria.

The Chinese oil group is also in competition with Korea National Oil Co to take over Swiss oil and gas explorer Addax Petroleum, according to sources. [ID:nL1235061]