(Updates closing price, adds movers)

HONG KONG, Nov 20 (Reuters) - China and Hong Kong stocks

edged higher in volatile trading on Wednesday, with mainland

shares supported by AI stocks ahead of Nvidia's ( NVDA ) earnings later

in the day, while investors remained cautious amid steady

lending rates.

** The Shanghai Composite index closed up 0.66% at

3,367.99.

** The blue-chip CSI300 index ended up 0.22%, with

the consumer staples sector and the healthcare

sub-index closing 0.37% and 2.13% higher,

respectively.

** The CSI300 Artificial Intelligence Index

climbed 1.5% ahead of Nvidia's ( NVDA ) report card later in

the day.

** Hong Kong's benchmark Hang Seng Index gained 0.21%

at 19,702.79.

** China's central bank left key lending rates unchanged at

the monthly fixing on Wednesday, after recent rate cuts squeezed

banks' profitability and the yuan came under fresh pressure with

Donald Trump's imminent return to the White House.

** Market fundamentals have improved following the recent

policy measures but haven't shown significant strength yet. The

market rotation among major sectors is likely to stay with no

clear signs of earnings bottoming out, analysts at Sinolink

Securities said in a note.

** Around the region, MSCI's Asia ex-Japan stock index

was weaker by 0.19%.

** Chinese ADRs fell 0.75% overnight.

** Elsewhere, major Chinese fund companies announced a

reduction in fees for a batch of equity exchange-traded funds

(ETFs), after China's chief securities regulator Wu Qing pledged

to encourage index investment and fund industry fee reform.