June 17 (Reuters) - Hong Kong stocks on Wednesday recouped some of the previous two day's losses, led by rises in shares of Chinese banks on hopes for reform of their shareholding structures.
But investors remain cautious, as Hong Kong lawmakers began a debate on Wednesday a Beijing-backed electoral reform proposal that could trigger fresh protests in the Chinese-controlled city.
The Hang Seng index rose 0.7 percent, to 26,753.79, while the China Enterprises Index gained 1.2 percent, to 13,414.83 points.
Shares of Chinese lenders listed in Hong Kong rose after Bank of Communications (BoCom) said its plans for mixed-ownership reform obtained Beijing's approval.
The plans allow China's fifth-biggest lender to introduce more private shareholding and give employees incentives through stock ownership schemes. The approval fuels hopes other lenders would soon adopt similar reforms. (Reporting by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)