HK shares may fall; exporters may drop

HONG KONG, Nov 17 (Reuters) - Hong Kong shares are likely to
fall on Monday, with export-oriented stocks such as Li & Fung
(0494.HK) under pressure after U.S. retail sales posted their
steepest drop ever in October.

Investors may also find little comfort over the outcome of
the weekend meeting of the Group of 20 developed and developing
countries, which failed to come up with concrete measures to ease
the looming global recession.

Local developers such as billionaire Li Ka shing's Cheung
Kong (Holdings) (0001.HK) and retailer Esprit Holdings (0330.HK)
may also fall after figures last week showed Hong Kong slipped
into recession in the third quarter and the outlook was grim.

"It's going to be a bad day for stocks. Everything is
terrible. The G20 meeting concluded with no favorable result,"
said Francis Lun, general manager at Fulbright Securities. "Hong
Kong properties will be hit the hardest."

The benchmark Hang Seng Index .HSI rose 2.4 percent on
Friday to 13,542.66, as Chinese properties gained on hopes of
further easing of borrowing costs on the mainland. For the week,
though, the key index fell 5 percent.

The index may fall to the 12,000 level this week, Lun said.

STOCKS TO WATCH

* CITIC Pacific (0267.HK) has no immediate plan to sell
assets to boost its finances, the South China Morning Post said
Monday, citing the deputy chairman of its parent CITIC Group. The
steel-to-property conglomerate last week was rescued by its
parent after incurring losses from foreign exchange trading.

* China Southern Airlines (1055.HK) and China Eastern
Airlines (0670.HK). The state parents of the two mainland
carriers may get government cash injections of $440 million each
to cope with high costs and weak demand, an official newspaper
said on Monday.

* China Unicom (0762.HK) said on Sunday a proposed parent
merger between China United Telecommunications Corp, and China
Network Communications Group Corp will become effective in early
January 2009, a move to enhance management efficiency of the
parent companies and further facilitate the integration between
China Unicom and China Netcom. For statement please see
here
* China Merchants Holdings (0144.HK) said on Sunday it would
sell its non-core 64 percent stake in paint products maker
Hempel-Hai Hong and certain trademarks to the Denmark joint
venture partner Hempel A/S for HK$1.15 billion cash, a move to
allow the Chinese company to focus resources on core ports and
ports-related business. For statement please see
here

* Wing Hang Bank (0302.HK) said last Friday it would make a
full provision for its exposure to HK$377 million worth of US
dollars, Euros and New Zealand dollar denominated bonds issued by
two major banks in Iceland with a post-tax impairment loss of
HK$315 million.The bank said its loss will not have any
significant impact on its business. For statement please see
here

(Editing By Keiron Henderson)