HK shares up 3.4 pct on US gains;China banks rally

* HSI, HSCE stocks up in broad Wall Street-triggered rally

* Sinopec soars on forecast-beating profit, fuel hike talk

* Yanzhou Coal gains on strong first-half profit growth

(Updates to mid-day)

HONG KONG, Aug 25 (Reuters) - Hong Kong shares rose 3.4 percent on Monday, with the entire blue chip index joining a Wall Street-fuelled rally on the local bourse, bouncing back from a sharp sell-off on Thursday.

A clutch of stocks including Sinopec Corp (0386.HK), Yanzhou Coal (1171.HK), China Construction Bank (0939.HK) and ICBC (1398.HK) surged after posting forecast-beating or matching first-half earnings.

Local shares slipped 2.6 percent on Thursday on fading hopes for the imminent launch of a stimulus plan from China as well as caution ahead of the typhoon-triggered holiday on Friday.

China's second largest lender, China Construction Bank, shot up 3.7 percent after announcing a 71 percent growth in profit, in line with analyst expectations.

HSBC upgraded the stock to neutral from underweight on Monday, following the recent decline in its share price. Shares in CCB have slipped more than 13 percent this month as worries over inflation and slowing growth in China weighed down the banking sector.

Shares in the nation's largest bank ICBC rallied 3.5 percent after the lender posted a 41 percent increase in net profit in the second quarter.

The benchmark Hang Seng Index .HSI ended the morning session 690.30 points higher at 21,082.36 after opening up 1.7 percent.

"Hong Kong shares were heavily oversold on Thursday and are now catching up with gains on Wall Street on Thursday and Friday," said Castor Pang, strategist with Sun Hung Kai Financial.

Mainboard turnover had risen to HK$30.8 billion ($3.9 billion) from HK$29.5 billion at mid-day on Thursday.

Index heavyweights anchored gains on the HSI with HSBC Holdings (0005.HK) rising 3.1 percent and China Mobile (0941.HK) climbing 2.8 percent.

The China Enterprises Index .HSCE of top locally listed mainland Chinese firms rallied 4 percent.

Shares in Asia's largest refiner Sinopec Corp (0386.HK) rose 3.8 percent helped by retreating crude oil prices and growing speculation that Beijing may hike prices of petroleum products for the second time this year.