May 19 (Reuters) - Hong Kong stocks rose on Tuesday, led by Chinese companies, as excitement in mainland markets over accelerated economic reform and financial deregulation rippled across the border.
The Hang Seng index ended up 0.4 percent at 27,693.54 points, while the China Enterprises Index gained 1.9 percent, to 14,191.50.
China's benchmark indexes posted their biggest one-day gains in four months on Tuesday, after Beijing published guidelines for economic reform that prioritise further opening of the country's capital markets.
But gains in Hong Kong were more muted, as major foreign institutions including BNP Paribas Investment Partners and Morgan Stanley have turned cautious after the Hong Kong market's 13 percent April surge, while mainland interest in Hong Kong-listed counters also appears waning.
On Tuesday, the Hong Kong stock exchange said it expects to make a long-awaited announcement in coming weeks on a controversial proposal to rein in volatility which large investors favour but small investors say discriminates against them.
Among the most actively traded stocks on Hong Kong's main board were CCT Land, up 3.3 percent to HK$0.03; China Jinhai, up 37.1 percent to HK$0.96; and Landing International Development Ltd, down 8.6 percent to HK$0.14. (Samuel Shen and Pete Sweeney; Editing by Kim Coghill)