HK Hot Stocks - Power stocks rally, properties drop

HONG KONG, Aug 19 (Reuters) - At 0234 GMT the Hang Seng Index .HSI was 0.2 percent lower at 20,896.85 after opening 1.2 percent lower.

The index recovered from early lows as retreating oil prices sent shares in Asia's largest refiner Sinopec Corp (0386.HK) up 1.8 percent.

The China Enterprises Index .HSCE of top locally-listed mainland had recovered 0.2 percent after opening down 1.6 percent.

Here are some of the stocks on the move in early trade-

*Huaneng Power (0902.HK) rose 5.2 percent after Goldman Sachs removed the stock from its conviction sell list on hopes of further power tariff reforms and increased coal affordability.

Following power tariff hikes in China in July, investors are hoping for another round of increases after the Olympics.

Falling crude oil prices and the first signs of a slowdown in China's economy have driven down coal prices in recent weeks.

Other power stocks also bucked the broad market trend to rise on Tuesday. Datang Power (0991.HK) gained 4.7 percent while China Resources Power (0836.HK) moved up 4 percent.

*Property stocks extended Monday's losses as investors locked in gains on real estate developers ahead of Cheung Kong Holdings' (0001.HK) first half earnings on Thursday.

A lower contribution from sister company Hutchison Whampoa (0013.HK) and limited property development profits should send Cheung Kong's net profit down about 67 percent to HK$6.1 billion, according to the forecasts of four analysts polled by Reuters.

Cheung Kong dropped 2.4 percent, while Hong Kong's largest property developer Sun Hung Kai Properties (0016.HK) gave up 2 percent, leading losses on the main index.

*Shares in Foxconn International Holdings (2038.HK) jumped 9 percent, bouncing back from Monday's 24 percent plunge after the company warned of a significant decline in first half earnings.

*China Merchants Bank (3968.HK), the nation's sixth largest lender, rose 2.3 percent after more than doubling its profit in the first half on strong non-interest income growth and reduced credit costs. [ID:nN18487635]

(Reporting by Parvathy Ullatil; editing by Jonathan Hopfner)