HK stocks rebound on Shanghai strength, Sinopec jumps

HONG KONG, May 21 (Reuters) - Hong Kong stocks erased morning losses to rise more than 1 percent on Wednesday, following a sharp rebound in Shanghai on speculation that Beijing might be on the verge of raising state-set prices on oil products.

Chinese oil refiner Sinopec (0386.HK: Quote, Profile, Research, Stock Buzz)(600028.SS: Quote, Profile, Research, Stock Buzz) jumped nearly 5 percent after the stock hit its daily limit of near 10 percent in Shanghai.

PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz)(601857.SS: Quote, Profile, Research, Stock Buzz) gained 3.42 percent.

The benchmark Hang Seng Index .HSI rose 1.14 percent to 25,456.83 in late Wednesday trade. It opened down 1.36 percent.

The China Enterprises Index of Hong Kong-listed companies .HSCE, or H shares, had risen 1.23 percent by 0708 GMT. (Reporting by Alison Leung; editing by Anne Marie Roantree)