HONG KONG, April 13 (Reuters) - Hong Kong shares staged a mild recovery on Wednesday as bargain-hunters picked up large cap names after the biggest two-session decline for the benchmark since Japan's earthquake.
The Hang Seng Index closed up 0.66 percent at 24,135.03, although turnover fell to the lowest level this month. The China Enterprises Index rose 0.96 percent, tracking a similar advance on the Shanghai Composite Index .
HIGHLIGHTS:
* Henderson Land Co Ltd rose 2.7 percent after its parent lifted its stake in the company, a move that analysts said represented a vote of confidence in the company's prospects. [ID:nL3E7FC1IZ]
* Large cap names such as Tencent Holdings Ltd and Chinese banks including China Construction Bank Corp provided the biggest boosts to the index as funds returned to pick up bargains. Tencent shares rose 3 percent while CCB ended the day 1.2 percent higher.
* Local banks underperformed after the Hong Kong Monetary Authority stepped up efforts to control lending that threatens to fuel a property bubble. BOC (Hong Kong) Holdings Ltd fell 0.4 percent while Hang Seng Bank Ltd , which saw a record level of short interest, fell 0.5 percent.
* Airlines, laggards this year, were relative outperformers for a second session as traders reported significant buying interest among momentum traders and hedge funds. Weakness in oil prices and attractive valuations were reasons cited by markets players.
THE DAY AHEAD:
Volume, which was lighter on Wednesday on the Hong Kong and Shanghai bourses, is expected to remain tepid amid talk that Beijing may announce another increase in bank reserve requirements after the release of March inflation data, which is scheduled for later this week.
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