Hong Kong shares jump on HSBC, Hang Seng results

(For Shanghai stock market reports, click [.SS])
(Adds Tuesday lunch close, details)

By Rita Chang

HONG KONG, July 31 (Reuters) - Hong Kong stocks leapt 1.2
percent on Tuesday, fuelled by a Wall Street rebound, as the
city's lenders shot up a day after forecast-beating earnings
reports, with HSBC Holdings plc (0005.HK) leading the gains.

Hang Seng Bank (0011.HK) rallied to all-time highs following
its record first-half profit while BoC (Hong Kong) (2388.HK) and
Bank of East Asia (0023.HK) jumped on expectations that they
would also post strong interim earnings.

Investors brushed off China's move on Monday to raise the
level of deposits that lenders must hold in reserve, as Hong
Kong-listed China plays advanced 1.7 percent.

"The market is definitely cheered by HSBC and Hang Seng
results," said Jackson Wong, investment manager at Tanrich
Securities.

"But people are still cautious when we reach 23,000, so I
think we need to consolidate around this level."

The benchmark Hang Seng Index .HSI had risen 271.28 points
to 23,011.18 by lunch on mainboard turnover of HK$46.3 billion
(US$5.9 billion), topping Monday morning's HK$45.6 billion.

The China Enterprises Index of mainland companies listed in
Hong Kong .HSCE gained 216.80 points to 13,247.86.

HSBC, the biggest boost to the blue chips, vaulted 1.8
percent to HK$143.8 after its interim earnings results showed the
global lender's bad debt provisions were not as bad as had been
feared. (For details on HSBC results, click on [ID:nL30216196]).

Hang Seng Bank, a unit of HSBC, ended the morning up 4.5
percent at HK$118 in heavy trade after reporting a
stronger-than-expected 43.2 percent increase in first-half
earnings on Monday, triggering a spate of broker earnings
upgrades. (For details, click on [ID:nPEK296573],
[ID:nHKG261574]).

BoC, Bank of China's (3988.HK) Hong Kong arm, shot up 3.3
percent to HK$20 and Bank of East Asia, due to report its interim
earnings on Thursday, gained 4 percent to HK$47.05.

Insurers gained further ground, bolstered by China Life's
(2628.HK) upbeat profit guidance. (For details, click on
[ID:nLA552183]).

China Life, the country's top life insurer, climbed 2 percent
to HK$33.75 and rival Ping An Insurance (2318.HK) raced up 4
percent to HK$67.25.

PICC Property and Casualty Ltd. (2328.HK) surged 7.3 percent
to HK$9.55.

PetroChina Co. Ltd. (0857.HK) found a toehold a day after its
shares sank on news that Warren Buffett was reducing his stakes
in China's top oil producer. PetroChina shares gained 1.6 percent
to HK$11.56.
(US$1=HK$7.8)