HK shares up 0.8 percent, led by Chinese financials

(Updates to midday)

HONG KONG, July 10 (Reuters) - Hong Kong shares reversed course to rise 0.8 percent on Thursday, helped by a recovery in Chinese lenders, as investors focused on positive earnings estimates and talk that China may ease its aggressive credit tightening stance.

Brokers also attributed the strong buying in locally listed Chinese shares to an article by the head of the China Securities Regulatory Commission's Jilin branch in the Shanghai Securities News, urging the creation of a fund to stabilise the stock market.

The nation's largest bank, ICBC (1398.HK), surged 3 percent. China Construction Bank (0939.HK), the biggest gainer on the main index in the morning, rose 3.4 percent, while Bank of Communications gained (3328.HK) 3.7 percent.

China Merchants Bank (3968.HK), which last week estimated a more than 100 percent growth in its first-half net profit, added 5.5 percent to its recent rally.

Top insurer China Life (2628.HK) jumped 2.7 percent despite a 0.7 percent pullback on the Shanghai bourse.

"Judging by the strong volumes in the A-share market over the last few days it seems like the momentum in this rally will be sustained and the market may move higher in the short term," said Castor Pang, strategist with Sun Hung Kai Financial.

The Shanghai Composite Index .SSEC gained 9.4 percent in the three trading days to Wednesday amid expanding turnover.

The Hang Seng Index .HSI ended the morning session up 172.15 points at 21,977.96 after opening 1.1 percent lower.