HK shares pare gains; local developers weigh

* HK shares pare gains as investors dump developers

* Financials rise on China measures to boost liquidity

* Telecoms gain on 3G licence speculation (Updates to midday)

By Jun Ebias

HONG KONG, Dec 4 (Reuters) - Hong Kong shares pared gains on Thursday as investors dumped local developers after banks raised their mortgage rates, while financial stocks rose in response to China's planned measures to further boost liquidity.

The benchmark Hang Seng Index .HSI ended the morning session up 0.7 percent or 91.16 points at 13,679.82. The index rose 2 percent at the opening session, as investors cheered China's latest effort to stabilise its stock market.

China's cabinet on Wednesday approved measures aimed at keeping the stock market steady, boosting bond issuance and increasing the supply of credit. [ID:nPEK83991]

"There is an economic conference by top leaders in China right now and the market is expecting more stimulus. That's supporting investor sentiment," said Y.K. Lee, analyst at Core-Pacific Yamaichi.

China's top lender ICBC (1398.HK) gained 1.8 percent, while smaller rival China Construction Bank (0939.HK) rose 2.1 percent. These banks would likely benefit from Beijing's plan to spend $586 billion on infrastructure, Citi said in a report.  Continued...