HK stocks steady as quake fears ease; track Shanghai

(Updates to Wednesday close, details)

HONG KONG, May 14 (Reuters) - Hong Kong stocks held steady on
Wednesday as fears eased over the economic impact of China's
devastating earthquake, offsetting concerns over record high oil
prices and pessimistic comments by the U.S. Federal Reserve.

Insurer China Life (2628.HK: Quote, Profile, Research) -- which had dropped as much as
3 percent -- pared losses to close down 0.5 percent at HK$33.05
after its Shanghai-listed shares (601628.SS: Quote, Profile, Research) rebounded 2.2
percent from the previous session.

"The (local) market simply tracked the strength of mainland
stocks in the absence of fresh incentives," said Andrew To, sales
director at Tai Fook Securities. "Investors mostly stayed away as
the market lacked upward moving momentum."

The national death toll from the quake has climbed past
13,000 and is likely to rise steeply after media reports said
19,000 people were buried in rubble in just one area of China's
southwestern province of Sichuan. [ID:nSP50273]

The benchmark Hang Seng Index .HSI closed down 0.08
percent, or 19.29 points, at 25,533.48. The China Enterprises
Index of Hong Kong-listed mainland companies .HSCE, or H
shares, reversed course to close up 0.02 percent at 13,980.24.

Mainboard turnover fell to HK$67.92 billion ($8.7 billion)
from HK$80.84 billion on Tuesday.

The main index has dropped more than 8 percent so far this
year, lagging a 6 percent rise in Taiwan shares , a 3
percent drop in Seoul stocks and a 7.8 percent loss for
Japan's Nikkei stock index .N225 over the same period.

The H-share index is down more than 13 percent this year,
compared with a 30 percent drop in Shanghai's benchmark stock
index .SSEC.

Hong Kong Exchanges and Clearing Ltd (0388.HK: Quote, Profile, Research) fell 1.69
percent even after it posted a 79 percent jump in first-quarter
earnings on higher turnover due to sustained investor interest in
China's booming economy. [ID:nHKG224170]

But shares of Chongqing Iron and Steel (1053.HK: Quote, Profile, Research) soared 18.2
percent after the steel producer said its production plants in
Chongqing were not affected by the earthquake. Sichuan Expressway
(0107.HK: Quote, Profile, Research) climbed 11.48 percent after the toll operator said
operations of its expressways in Sichuan had not been affected.

Chinese People Holdings Co (0681.HK: Quote, Profile, Research) fell 6.8 percent after
the piped gas supplier said the earthquake might hit its earnings
and the firm was still estimating losses on impairment of
property, plant and equipment, goodwill and intangible assets.

Some banking stocks came under pressure, with shares of HSBC
(0005.HK: Quote, Profile, Research) down 0.15 percent at HK$135.30 after Federal Reserve
chief Ben Bernanke said financial markets were still troubled.

Chinese insurers pared early losses after mainland stocks
closed up nearly 3 percent.

China Life (2628.HK: Quote, Profile, Research) said it expected claims for the Sichuan
earthquake to far exceed the claims for snowstorms that hit
southern China early this year, weighing on insurers early in the
session. China's largest non-life underwriter, PICC Property and
Casualty (2328.HK: Quote, Profile, Research), fell 0.57 percent.

Ping An Insurance (2318.HK: Quote, Profile, Research)(601318.SS: Quote, Profile, Research) fell 0.56 percent. The
company said it had received shareholders' approval to issue an
additional up to 20 percent of the company's H shares.

Brokers said oil refiners, already squeezed by record high
oil prices, also fell on expectations they might have to raise
production to meet demand after the disaster.

Asia's top oil refiner, Sinopec (0386.HK: Quote, Profile, Research), lost 2.22
percent to HK$7.49 and China's second-largest oil refiner,
PetroChina (0857.HK: Quote, Profile, Research), dropped 0.55 percent.

Shares in Aluminum Corp of China Ltd (2600.HK: Quote, Profile, Research), China's top
aluminium firm, gained 2.6 percent and online services provider
Tencent (0700.HK: Quote, Profile, Research) rose 3.35 percent after news that they will
join Hong Kong's blue-chip index.

Anhui Conch Cement (0914.HK: Quote, Profile, Research)(600585.SS: Quote, Profile, Research) rose 3.04 percent
after China's top cement maker said it planned to raise up to
11.5 billion yuan ($1.64 billion) by issuing A shares in Shanghai
for expansion of cement and clinker production lines.

Shaw Brothers (0080.HK: Quote, Profile, Research) and its 26 percent-owned broadcaster
TVB (0511.HK: Quote, Profile, Research) both soared about 11 percent before the stocks were
suspended in the afternoon. Basis Point reported that a foreign
private equity fund and a private buyer from China were rumoured
to be interested in ownin a stake in TVB.
(US$1=HK$7.8)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree)