HONG KONG, Nov. 20 (Xinhua) -- Hong Kong stocks rebounded from a huge deficit of more than 1,000 points in early trading to close311.04 points higher at 27,771.21 on Tuesday.

The blue-chip Hang Seng Index opened 876.53 points, or 3.19 percent, sharply lower at 2,6583.64 under the combined impact of Wall Street's overnight slump and the Chinese mainland market downturns in early trading.

The index plunged as much as 1,055.89 points, or 3.85 percent, to the day's lowest 26,404.28 during the morning session.

Investors chose to scoop up cheap equities when trading was resumed in the afternoon, encouraged by the turnaround performance of markets on the Chinese mainland and Japan.

Investors' orders for market heavyweight China Mobile, together with oil and steel sectors, boosted the index out of the negative territory in the afternoon to close 311.04 points, or 1.13 percent, higher at 27,771.21, just off the day's highest level at 27,851.31.

Turnover rose to 146.41 billion HK dollars (18.83 billion U.S. dollars) from Monday's 103.96 billion HK dollars (13.37 billion U.S. dollars).

China Mobile, the country's largest mobile phone operator and the market's largest stock measured by capitalization, pared its early losses and rebounded from the day's lowest 125 HK dollars toclose 1.97 percent higher at 134.4 HK dollars.

HSBC, another market heavyweight and the city's largest bank, narrowed its losses by dipping 0.22 percent to 135.2 HK dollars. It once fell to the day's lowest 132.3 HK dollars.

Bank of EastAsia rose 4.77 percent to 50.55 HK dollars while BOCHK fell 2.84 percent to 19.18 HK dollars. BOCHK announced Monday it has bought a 4.94 percent stake in Bank of EastAsia.

PetroChina, the largest oil producer in China, rose 2.2 percent to 14.84 HK dollars. CNOOC, China's largest offshore oil producer, surged 5.93 percent to 13.22 HK dollars. Sinopec, the largest oil refiner in Asia, leaped 4.61 percent to 10.9 HK dollars.

Hong Kong's property companies were mixed. New World Development fell 3.82 percent to 26.45 HK dollars while Sino Land lost 2.76 percent to 24.65 HK dollars. SHK Properties gained 1.96 percent to 149.8 HK dollars. Cheung Kong gained 0.79 percent to 139.7 HK dollars.

Hong Kong Exchange and Clearing Limited, the market's sole operator, dipped 0.61 percent 228.2 HK dollars.

The H-shares index, which was composed of companies, registered on the Chinese mainland, gained 332.21 points, or 2.01 percent, to close at 16,867.38.

Most of China's Banking and financials rebounded. ICBC, China 's largest lender, rose 2 percent to 6.12 HK dollars. CCB, the second largest bank in China, gained 1.78 percent to 7.44 HK dollars. Bank of China slid 0.47 percent to 4.26 HK dollars.

China Life, or the country's largest life insurer, recovered 2 percent to 43.45 HK dollars. Ping An gained 0.92 percent to 88.15 HK dollars.

Iron and steel sectors all jumped over rising sales prices. Angang Steel jumped 8.19 percent to 21.8 HK dollars. Maanshan Iron surged 10.71 percent to 5.48 HK dollars. Shougang International gained 1.16 percent to 3.49 HK dollars. (7.772 HK dollars = 1 U.S. dollars)