HONG KONG, May 15 (AP) -- Hong Kong began preparing for its first typhoon of the storm season Monday as Chanchu began whirling toward the city after killing nearly 40 people and leaving thousands homeless in the Philippines.

The storm -- expected to start lashing Hong Kong on Wednesday -- was picking up strength in the South China Sea early Monday -- about 440 kilometers (275 miles) southeast of the Paracel Islands, the Hong Kong Observatory said.

The Paracels are a group of low coral islands and reefs, about 700 kilometers (435 miles) south of Hong Kong.

Chanchu, which means "Pearl" in Chinese, was moving north-northwest at 14 kph (8.7 mph) and was packing maximum sustained winds of 157 kph (97 mph), the observatory said.

The storm blew away from the Philippines on Sunday, after killing at least 37 people. Most were on a ferry that sank near central Masbate island after the skipper ignored a coast guard ban on sea travel.