HK shares up 0.65 pct on property gains, banks down

* Energy stocks up on higher oil prices

* Fears of more cash calls capped the main index

* CCB under selling pressure after repeated share sales (Updates to midday)

By Alison Leung

HONG KONG, May 13 (Reuters) - Hong Kong stocks edged up 0.65 percent at midday on Wednesday as higher oil prices boosted energy stocks and property counters rose due to lower mortgage rates, but banks pulled back after repeated sales of CCB shares (0939.HK) by investors hurt sentiment.

China Construction Bank fell 2.2 percent to HK$4.87 after a shareholder offered 738 million CCB shares at HK$4.88 each.

The sale came one day after the cash-strapped Bank of America (BAC.N) sold $7.3 billion worth of shares in the Chinese lender. [ID:nHKG158391]

"The market has reached its resistance area after sharp rallies in the past few weeks and the upside is very limited now," said Alex Tang, research director at Core Pacific-Yamaichi International.

The benchmark Hang Seng Index was up 111.26 points at 17,264.90 by midday, after opening 0.33 percent lower.

Turnover jumped to HK$110.5 billion ($14.26 billion) from midday Tuesday's HK$44.4 billion, swelled by CCB share transactions.

Several large U.S. banks are planning big capital-raisings after the stress tests and they could sell more assets including their stakes in Chinese companies, said Andrew To, sales director at Tai Fook Securities.

"The blue chip index has gone up about 6,000 points in the past nine weeks and it is likely to head for a correction," To said.

Analysts said the market had been overbought as overseas funds flooded the Asian markets and more companies, which faced difficulty borrowing from banks, could also raise cash in the market.

PROPERTY, OIL SHINE

Property stocks were mostly higher with New World Development (0017.HK), leading the blue chip gainers up 8.7 percent to HK$11.78. Wharf Holdings (0004.HK) and Hang Lung (0101.HK) gained 6.1 percent and 6.0 percent respectively.

Rotational buying lifted the property sector and hefty fund inflows dragged interest rates down, giving support to the city's housing prices, Tang said.

CNOOC (0883.HK) also jumped 7.5 percent after oil rose towards $60 a barrel on Wednesday.

Oil refiners PetroChina Co Ltd (0857.HK) and Sinopec Corp. (0386.HK) rose on expectations of a fuel price hike. PetroChina was up 4.1 percent to HK$8.44, while Sinopec gained 2.1 percent to HK$6.27.

Consumer goods exporter Li & Fung Ltd (0494.HK) fell 0.94 percent to HK$21.1. Its managing director, William Fung, said on Wednesday the firm will boost its health, beauty and cosmetics businesses through acquisitions and aimed to lift related revenue to $1 billion in 2010 from about $300-400 million currently. ($1=HK$7.749) (Reporting by Alison Leung; Editing by Ken Wills)