HK Hot Stocks - China Unicom vaults, ICBC drops

HONG KONG, June 2 (Reuters) - By 0330 GMT the benchmark Hang Seng Index .HSI was down 0.4 percent at 18,807.91 after opening 0.2 percent higher.

The China Enterprises Index .HSCE of top mainland companies had fallen 0.1 percent to 10,928.49.

Here are some of the major movers in early trade-

* Industrial and Commercial Bank of China (1398.HK) (ICBC) dropped 2.9 percent to HK$4.96 after a strategic foreign investor sold down a part of its holding in the Chinese lender.

Goldman Sachs (GS.N) offloaded up to about $1.9 billion worth of shares in the world's biggest bank by market capitalisation at HK$4.88 per share, a discount of 4.5 percent to its Monday closing price.

The share placement also weighed on other major mainland lenders with shares in Bank of China (3988.HK) slipping 1.4 percent and China Construction Bank (0939.HK) giving up 0.4 percent.

* Resource counters extended the previous session's gains as data from both China and the United States suggested demand for materials had stabilised.

Aluminum Corp of China or Chalco (2600.HK) jumped 4 percent while Jiangxi Copper (0358.HK) climbed 4.9 percent to HK$14.62.

Angang Steel (0347.HK) gained 5.5 percent while Yanzhou Coal (1171.HK) advanced 3.7 percent.

* Telecom stocks, which have been laggards in last month's rally, picked up pace on Tuesday with China Unicom (0762.HK) vaulting 14.3 percent to HK$11.86 to become the top gainer on the main index.

The stock, which gained only 7 percent in May compared with the main index's best-in-a-decade 17 percent advance, was raised to a buy rating from neutral by UBS with a target price of HK$13.50.

China's second-largest wireless service provider is expected to capture a bigger market share and increase its average revenue per user with the launch of its third generation mobile services later last month.

Fixed-line service provider China Telecom (0728.HK) jumped 3.6 percent to HK$3.99. UBS set a target price of HK$4 on the stock with a neutral rating.

But market leader China Mobile (0914.HK) lagged with a 0.5 percent drop, as the company was expected to take a hit from increased competition in the sector. (Reporting by Parvathy Ullatil; Editing by Jacqueline Wong)