HK Hot Stocks-HSBC,China Mobile drop;Zijin shines

HONG KONG, July 14 (Reuters) - At 0338 GMT, the Hang Seng Index .HSI had reversed course to fall 0.9 percent to 21,976.31, led by a 1.9 percent fall in index heavyweight HSBC Holdings (0005.HK) as investors fretted about the outlook for the company in light of troubles at its U.S. peers.

The China Enterprises Index .HSCE was down 0.3 percent.

Here are some stocks on the move in late morning trade.

* China Mobile (0941.HK), the most heavily traded stock of the morning, joined HSBC in its downslide, falling 1.1 percent after leading gains on Friday with a 2.7 percent rally.

* The world's largest contract manufacturer of cell phones, Foxconn International Holdings (2038.HK), was the biggest percentage loser on the main index with a 6.7 percent fall, retracting from a 10 percent gain on Friday. The stock has been under severe selling pressure, dropping to a three-year low, in recent months on lower handset demand forecasts.

* Zijin Mining (2899.HK) jumped 4.2 percent as gold prices hovered near a four-month high after record oil prices and a falling U.S. dollar sparked investor interest.

* China Shenhua Energy (1088.HK) gained 1.3 percent after Macquarie Research upgraded the stock to outperform from neutral and increased its international thermal coal price forecasts by 28.6 percent for 2009 to reflect continued strength in the coal market.

* Air China (0753.HK) ralied 1.5 percent despite near-record oil prices.

Merrill Lynch upgraded the stock to buy from underperform as it expects air traffic to rebound in the second half and said the 60 percent fall in the share price this year had more than discounted the tougher operational environment.

* Maanshan Iron & Steel (0323.HK) rose 2.9 percent after UBS upgraded the stock to buy from neutral on Friday on a potential earnings surprise.

UBS expects Maanshan to report 76 percent growth in its first-half net profit as it benefits from the inflationary environment. (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)