Hong Kong has begun preparing for its first typhoon of the storm season as Chanchu began whirling toward the city after killing nearly 40 people and leaving thousands homeless in the Philippines.

The storm, which is expected to start lashing Hong Kong on Wednesday, was picking up strength in the South China Sea, and is about 370 kilometers (229 miles) east-southeast of the Paracel Islands, according to the Hong Kong Observatory.

The Paracels are a group of low coral islands and reefs, about 700 kilometers (435 miles) south of Hong Kong.

Chanchu, which means "Pearl" in Chinese, was moving north-northwest at 14 kph (8.7 mph) and was packing maximum sustained winds of 176 kph (109 mph), the observatory said.

The storm blew away from the Philippines on Sunday, after killing at least 37 people.

Most were on a ferry that sank near central Masbate island after a coast guard ban on sea travel was ignored.