HK shares seen hovering; resources stocks likley lower

HONG KONG, May 26 (Reuters) - Hong Kong shares are seen
stalling on Tuesday in the absence of any major positive news to
drive further gains and lingering worries over China's plan to
resume new listings in the mainland markets.

The eight-month old ban on initial public offerings was
widely expected to be in place till October.

A pullback in crude oil prices, on expectations that oil
cartel the Organisation of Petroleum Exporting Coutries will hold
output steady at its latest meeting, will likely weigh on
resources counters, which enjoyed a good run last week on oil's
$5 per barrel rise.

The benchmark Hang Seng Index .HSI reversed early losses to
inch up 0.4 percent to 17,121.82 on Monday, snapping a three-day
slump on a recovery in the Shanghai bourse and a strong surge in
property counters.

STOCKS TO WATCH-

* Volkswagen (VOWG.DE) plans to explore options for a
partnership with China's BYD Co (1211.HK) in the area of hybrids
and electric vehicles powered by lithium-ion batteries, Europe's
largest carmaker said on Monday. [ID:nLP324277]

Volkswagen is the first major industrial partner for BYD, a
battery specialist and the fledgling maker of the F6DM plug-in
hybrid that sold a 10 percent stake to Warren Buffett's Berkshire
Hathaway (BRKa.N) in September for $230 million

* Manulife Financial (0945.HK)(MFC.TO) said it had increased
the size of its preferred share issue to 14 million shares,
raising $350 million to reduce amounts outstanding under
Manulife's credit facility with Canadian chartered banks and for
general corporate purposes. For statement please click
here

* Hong Kong and China Gas (0003.HK) raised HK$1.1 billion
($141.9 million) via a two-tranche sale of domestic bonds as part
of its new medium-term note programme, sole lead manager HSBC
said on Monday.

The gas distributor, widely known as Towngas, sold HK$500
million in 10-year notes at a coupon of 3.90 percent and HK$600
million in 15-year notes at a coupon of 4.25 percent, said HSBC
via a spokeswoman.

Towngas, a frequent issuer in debt capital markets, intends
to use the proceeds to refinance existing debt, fund capital
spending and for other general corporate purposes.

* Electronic products maker Stone Group 0409.HK said its
substantial holder BJ Stone Investment proposed to take the
company private by offering HK$0.48 per share cash, or 39.1
percent premium over last closing price of HK$0.345, for all
outstanding shares it did not already own for HK$553 million. For
statement please click
here

* CITIC Pacific (0267.HK) performed well in the first quarter
and it would not be affected by future Australian dollar
fluctuations after it restructured all related foreign-exchange
contracts, The South China Morning Post reported, citing chairman
Chang Zhenming. The Beijing-backed company is also looking for a
new managing director after its founders Larry Yung and Henry Fan
resigned in April.

* Tycoon Li Ka-shing-controlled Hutchison Whampoa (0013.HK)
was not interested in bidding for a stake in listed appliance
chain GOME (0493.HK), The Hong Kong Economic Journal reported
quoting a Hutchison spokesman.

Mainland media reports have said Li and Fosun International
(0656.HK) chairman Guo Guangchang are competing with private
equity fund Kohlberg Kravis Roberts (KKR) and Bain Capital for a
strategic stake in GOME.
----------------------MARKET SNAPSHOT @ 2246 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 887 -0.15% -1.330
USD/JPY JPY= 94.78 -0.06% -0.060
10-YR US TSY YLD US10YT=RR 3.4495 -- 0.000
SPOT GOLD XAU= 955.5 -0.24% -2.300
US CRUDE CLc1 61.29 -0.62% -0.380
DOW JONES .DJI 8277.32 -0.18% -14.81
ASIA ADRS .BKAS 107.12 0.56% 0.60
-------------------------------------------------------------

MARKET SUMMARY
*Europe shares close higher in subdued trade [ID:nLP141136]
*Oil falls towards $61, OPEC cut unlikely [ID:nSYD459549]
*Euro slips on German Ifo in thin holiday trade [ID:nLP147885]
*Bunds hit 6-mth low in holiday-thinned trade [ID:nLP92144]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)