Hong Kong stocks rise, China quake impact limited

(For Shanghai market reports, click [.SS])
 (Updates to Tuesday lunch close)

 HONG KONG, May 13 (Reuters) - Hong Kong stocks rose 0.69
percent on Tuesday, led by HSBC Holdings (0005.HK: Quote, Profile, Research, Stock Buzz) after it
posted better-than-expected results, while investors expected the
market impact of an earthquake in southwest China to be limited.

 Nearly 10,000 people were killed by the earthquake, China's
worst in three decades, which hammered southwest Sichuan province
and nearby areas. [ID:nL1281973]

 "The impact from the earthquake on the market will be limited
at the first glance because it's far away from major economic
activities," said Phillip Securities strategist Y.K. Chan.

 "On the one hand, insurance firms will be negatively
affected, on the other hand, the quake will stimulate some
re-development, which will benefit infrastructure companies such
as Anhui Conch (0914.HK: Quote, Profile, Research, Stock Buzz)."

 The benchmark Hang Seng Index .HSI had risen 0.69 percent,
or 174.08 points, to 25,237.25 by midday, led by HSBC which rose
1.7 percent to HK$135.10.

 The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, seesawed in and out of positive
territory most of the morning, ended up 0.48 percent to
13,728.03.

 Mainboard turnover fell to HK$40.5 billion ($5.2 billion)
from HK$44.7 billion on Friday before the market closed on Monday
for a public holiday.

 "The fluctuation in the H-share index is a response to the
Chinese government's tightening policy rather than the
earthquake," Chan added. "The market itself is also under
consolidation pressure."

 China's central bank announced on Monday that it would raise
banks' reserve requirement ratios by 0.5 percent, bringing the
rate for large banks to a record 16.5 percent, as it seeks to
keep inflation under control.

 Europe's biggest bank, HSBC Holdings, on Monday announced
profit in the first quarter that beat year ago numbers as growth
in Asia helped counter some $5 billion in hits from bad debts on
U.S. home loans and asset writedowns.

 PICC Property and Casualty Co Ltd (2328.HK: Quote, Profile, Research, Stock Buzz), China's largest
non-life underwriter, fell 4.3 percent to HK$6.92 after the
earthquake, but the country's top cement maker Anhui Conch
(0914.HK: Quote, Profile, Research, Stock Buzz) jumped 5.4 percent to HK$65.85.

 Companies based in China's Sichuan province or nearby
Chongqing city, including Sichuan Expressway (0107.HK: Quote, Profile, Research, Stock Buzz), Dongfang
Electrical Corp (1072.HK: Quote, Profile, Research, Stock Buzz) and Chongqing Iron & Steel Co Ltd
(1053.HK: Quote, Profile, Research, Stock Buzz), have been suspended trading after the earthquake.

 Shares in Aluminum Corp of China Ltd (2600.HK: Quote, Profile, Research, Stock Buzz), China's top
aluminium firm rose 4.8 percent and online services provider
Tencent (0700.HK: Quote, Profile, Research, Stock Buzz) soared 12 percent after news that they will
join Hong Kong's blue-chip index.
 ($1=7.8 Hong Kong Dollar)
 (Reporting by Judy Hua; Editing by Keiron Henderson)