HK shares up 1.9 pct in US data-triggered rebound

* Strong rebound across sectors on U.S. growth data

* CLP Holdings drags after HK-China energy memo

* BOC Hong Kong drops on broker downgrade

By Parvathy Ullatil

(updates to mid-day)

HONG KONG, Aug 29 (Reuters) - Hong Kong shares rose 1.9 percent on Friday, staging a strong rebound from the previous session's sell-off, after data showed the U.S. economy grew at a surprisingly strong clip in the second quarter.

But CLP Holdings (0002.HK) fell 3.9 percent after Hong Kong signed a memorandum of understanding with China on natural gas supply, threatening the need for an LNG terminal project that the city's largest power utility was bidding to build.

Credit Suisse downgraded CLP to neutral from outperform and cut its target price on the stock to HK$73 from HK$81, saying the memorandum implied a lower chance of CLP winning the LNG terminal project.

Despite Friday's rally, analysts said uncertainty over health of the world's largest economy would continue to haunt the local market.

"In the second quarter the (U.S.) economy got a lot of help including the stimulus package from the government and a weak dollar which boosted exports," said Patrick Shum, strategist with Karl Thomson Securities.

"But with the dollar on a rebound economic growth will slow down again in the third quarter," he said.

The benchmark Hang Seng Index .HSI ended the morning session up 390.09 points at 21,362.38.

Mainboard turnover rose to HK$34.6 billion ($4.4 billion) from HK$33.7 billion at mid-day on Thursday.

The blue-chip index is still seen trending towards a near two-year low of 18,000 points and not the 24,000 breakthrough level local investors have been seeking, analysts said.

China Mobile (0941.HK) continued to languish after being battered by a slew of broker downgrades on Thursday.

The stock slipped 0.7 percent, adding to its 6.3 percent fall in the previous session as investors stayed focused on looming uncertainties in the Chinese telecom sector.  Continued...