Hong Kong stocks pared early gains and managed to rebound slightly on Wednesday after losing six consecutive sessions.

The benchmark Hang Seng Index rebounded 138.98 points, or 1.02 percent, to open at 13,807.03 and once rose 350.98 points, or 2.57 percent, to the day's highest 14,019.03.

Investors remained very cautious cash out on the rebound ahead of blue-chip companies' earnings reports in the United States, trimming the gains to only 36.56 points, or 0.27 percent, to close at 13,704.61, just off the day's lowest 13,674.96.

Among 42 components of the Hang Seng Index, advancing companies led declining issues 29 to 13.

Turnover rose to 66.23 billion HK dollars (8.54 billion U.S. dollars) from Tuesday's 47.28 billion HK dollars (6.1 billion U.S. dollars).

Market heavyweight HSBC, which accounts for the largest weighting of the index, lost 4.11 percent to 70 HK dollars, offsetting much of the HSI's gains.

China Mobile, the bourse's largest stock by capitalization, added 0.83 percent to 72.8 HK dollars.

HKEx, the stock market's sole operator, edged up 0.2 percent to 73.5 HK dollars.

Most of China's banks and insurers rebounded. ICBC was the only bank that fell on pressure of strategic investors' reduction of their holdings in China's largest lender. ICBC shed 1.17 percent to 3.37 HK dollars.

Bank of China, the country's second largest bank, recovered 2.7 percent to 1.9 HK dollars after Royal Bank of Scotland Group PLC sold its entire holding in BOC. RBS dumped 10.8 shares of BOC to raise 2.37 billion U.S. dollars, making a profit of 794.3 million U.S. dollars.

China Construction Bank rebounded 2.98 percent to 3.8 HK dollars after strategic investors' recent sell-offs Bank of Communications advanced 3.14 percent to 5.25 HK dollars. China Merchants Bank edged up 0.32 percent to 12.52 HK dollars.

China Life, the country's largest insurance company, gained 2.5 percent to 22.55 HK dollars. Ping An, China's second largest insurer after China, went up 4.25 percent to 35.55 HK dollars.

China Enterprises Index, a gauge that reflects the performance of 43 companies registered in the Chinese mainland, rebounded 138. 51 points, or 1.96 percent, to close at 7,219.04.

China's energy companies all bounced moderately as oil prices rose near 39 U.S. dollars a barrel in Asia.

PetroChina, the largest oil producer in China, rose 2.03 percent to 6.55 HK dollars. Sinopec, Asia's largest refiner, added 0.92 percent to 4.39 HK dollars. CNOOC, China's largest offshore oil company, moved up 3.05 percent to 7.1 HK dollars. (7.75 HK dollars = 1 U.S. dollar).

(Xinhua News Agency January 14, 2009)