HK shares rebound as resource shares lead way

(For Shanghai stock market reports, click [.SS])
(Adds Tuesday lunch close, details)

By Rita Chang

HONG KONG, Feb 12 (Reuters) - Hong Kong stocks rose on
Tuesday as gains on Wall Street raised investor confidence,
lifting shares across the board a day after they suffered sharp
falls.

Resource shares were out in front as oil prices hit one-month
highs. Turnover was thin, however, indicating a lack of buying
conviction. Some investors were also still away for the Lunar New
Year holiday.

"We're all waiting for more bad news so how can we expect
people to buy in a big way?" said Steve Cheng, associate director
at Shenyin Wanguo.

The benchmark Hang Seng Index .HSI had risen 2 percent to
23,074.42 by lunch. The China Enterprises Index of mainland
companies listed in Hong Kong .HSCE climbed 2.6 percent to end
the morning at 12,859.87.

Mainboard turnover was HK$39.8 billion ($5.1 billion),
compared to Monday morning's HK$40.6 billion.

Global lender HSBC Holdings plc (0005.HK: Quote, Profile, Research, Stock Buzz) was the morning's
top traded stock, advancing 1.7 percent to HK$111.2.

Wireless operator China Mobile (0941.HK: Quote, Profile, Research, Stock Buzz) climbed 2.6 percent
to HK$115.60.

Among resource stocks, PetroChina Co Ltd (0857.HK: Quote, Profile, Research, Stock Buzz), the
country's top oil producer, rang up a 5.1 percent gain to
HK$11.18.

Yanzhou Coal (1171.HK: Quote, Profile, Research, Stock Buzz) leapt 4.5 percent to HK$13.36 and
Aluminum Corp of China (Chalco) (2600.HK: Quote, Profile, Research, Stock Buzz), the country's top
alumina producer, jumped 4 percent to HK$12.04.

Ping An (2318.HK: Quote, Profile, Research, Stock Buzz) underperformed with a 1.5 percent gain to
HK$55 after Goldman Sachs cut the stock to neutral from buy,
saying the life insurer faced capex challenges and needed to
unfreeze non-tradeable shares, among other difficulties.

Goldman also cut the country's top non-life insurer PICC
(2328.HK: Quote, Profile, Research, Stock Buzz) to sell from neutral on macro uncertainties and a
dampened earnings outlook. Shares ended the morning flat.

[ID:nHKG295229]

New Media shares (0708.HK: Quote, Profile, Research, Stock Buzz) jumped 140 percent to HK$1.63 in
their debut after the company raised HK$87.61 million in a Hong
Kong IPO.
(US$1=HK$7.8)
(Editing by Anne Marie Roantree)