HK blue chips down 0.5 pct, surrender earlier gains

HONG KONG, Jan 17 (Reuters) - Hong Kong stocks erased earlier
gains and reversed expectations of a rebound, with investors
increasingly nervous as fears rise that the U.S. could head into
a recession and that banks may face more losses related to risky
credit.

The benchmark Hang Seng Index .HSI was down naerly 1
percent at 24,231.29 at 0332 GMT.

The China Enterprises index of H shares .HSCE, or Hong
Kong-listed shares in mainland companies, was down 1 percent.
(Reporting by Rita Chang, editing by Ken Wills)