HONG KONG, Aug 11 (Reuters) - Merrill Lynch raised its China Mobile (Hong Kong) (0941.HK: Quote, Profile, Research) earnings forecasts for this year and next after the company reported better-than-expected first half profits on Wednesday.

The investment bank increased its net profit forecasts for this year and next by 2 percent and 4.4 percent, respectively, and increased its price target to HK$40 from HK$36 per share.

China Mobile shares were up by 2.32 percent on Thursday at HK$35.25 after rising more than 7 percent on Wednesday. The stock was the most actively traded in Hong Kong on Thursday.