By V. Phani Kumar
HONG KONG (MarketWatch) -- Hong Kong shares rose early Wednesday, paced by Chinese lenders on a rosy earnings outlook and a report the central bank has reversed a previous increase in reserve requirements on some banks. The Hang Seng Index (HK:HANGSENG 23,795, +83.68, +0.35%) added 0.9% to 23,915.00, and the Hang Seng China Enterprises Index climbed 1.2% to 13,143.76. Shares of China Construction Bank Corp. (HK:939 7.19, +0.12, +1.70%) (CICHY 18.16, +0.28, +1.57%) rose 1.6%, and Bank of Communications Co. (BCMXY 0.00, 0.00, 0.00%) (HK:3328 8.07, +0.10, +1.26%) added 1.5%, helping to offset a 0.3% fall in heavyweight HSBC Holdings PLC (HK:5 84.75, -0.25, -0.29%) (HBC 54.19, +0.95, +1.78%) . The gains came after a Reuters report cited two sources as saying the People's Bank of China has reversed a punitive increase in reserves on some unnamed banks after they were more cautious in making loans in February. The rise also came after banks powered an advance on Wall Street overnight. Local property developers also gained, cheering positive global cues, with New World Development Co. (HK:17 14.54, +0.18, +1.25%) (NDVLY 3.60, +0.04, +1.12%) rising 1%, and Sun Hung Kai Properties Ltd. (HK:16 128.40, +1.10, +0.86%) (SUHJY 16.36, +0.32, +2.00%) adding 1.4%. China's Shanghai Composite (CN:SHCOMP 3,002, +2.21, +0.07%) inched up 0.1% to 3,003.00.
