HK Hot Stocks-HKEx recovers, Li & Fung slides

HONG KONG, June 26 (Reuters) - At 0220 GMT, the Hang Seng Index .HSI was up 0.8 percent at 22,807.29.

The China Enterprises Index .HSCE of top locally listed mainland firms rose 1.2 percent.

Here are some of the stocks on the move:

* Local bourse operator Hong Kong Exchanges & Clearing (0388.HK) climbed 2.4 percent a day after it dropped to its lowest level this year, weighed down by broker warnings of dwindling turnover on the exchange.

Citigroup upgraded the stock to buy from sell on Thursday, saying investors were overlooking products in the pipeline such as exchange-traded funds and the imminent launch of depository receipts.

* Shares in trading and retail company Li & Fung (0494.HK) slid 2.4 percent after Merrill Lynch cut its rating on the stock to underperform from neutral, saying a worsening U.S. consumption environment would pressure margins.

Merrill lowered its target on the firm's share price by 24 percent to HK$24.73 and advised a switch to fashion chain Esprit (0330.HK) for its more defensive growth profile and more reasonable valuations

Esprit fell 0.2 percent.

* Air China (0753.HK), the mainland's flag carrier, rose 4.6 percent on retreating oil prices, recovering from a sharp slump in recent sessions.

* Sinopec Corp (0386.HK), Asia's largest refiner, advanced 2.2 percent on the oil price pullback, while its subsidiary, Sinopec Shanghai PetroChemical (0338.HK), climbed 2.5 percent (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)