RPT-HK shares seen volatile;Cathay,CITIC,Air China eyed

(Repeats to fix formatting)

HONG KONG, Aug 18 (Reuters) - Hong Kong shares may rebound on
Tuesday with steep losses in the previous session opening up
opportunities for bargain buying, but the market is likely to be
volatile after U.S. stocks suffered their worst loss in seven
weeks overnight.

Cathay Pacific (0293.HK), CITIC Pacific (0267.HK) and Air
China (0753.HK)(601111.SS) will be in focus on Tuesday after
CITIC Pacific, which was hit by nearly $2 billion in foreign
exchange-related losses last year, said it was selling the bulk
of its holdings in Hong Kong's flagship Cathay Pacific to Air
China for HK$6.3 billion ($808 million).

Cathay's parent Swire Pacific (0019.HK) will also buy a 2
percent stake in the Hong Kong carrier for HK$1.01 billion,
bringing its total holdings in Cathay to 41.97 percent.

Shares of the three companies, which were suspended, will
resume trading on Tuesday.

The benchmark Hang Seng Index .HSI recorded its steepest
drop in 4-½ months, sliding 3.6 percent on Monday, tracking a
sharp drop on the Shanghai bourse and after U.S. consumer
confidence data darkened the global economic outlook.

STOCKS TO WATCH-

* Fosun International (0656.HK) said late on Monday that its
Shanghai-listed Nanjing Iron & Steel Shareholding Co. (600282.SS)
posted an 89.48 percent year-on-year fall in first-half profit to
55.56 million yuan ($8.13 million) and the unit expects net
profit to fall more than 50 percent for the whole of 2009 on the
impact of the financial crisis. For statement please click
here

* China Travel International (0308.HK) said it expected a
considerable decrease in first-half profit as its operating
environment was adversely affected by the financial turmoil and
the H1N1 virus. It said its financial position remained solid and
overall operations remained sound and intact. For statement
please click
here

* Sino Union Petroleum & Chemical (0346.HK) said it had hired
Nomura International (Hong Kong) as sole financial adviser and
placing agent as it raises at least HK$2 billion ($258.1 million)
through a private placement of shares and convertible bonds to
fund the development of its coal mining business, the exploration
and operation of oilfields, and its etrol station business in
Madagascar. For statement please click
here

* Weichai Power (2338.HK) said it had obtained approval for a
proposed issue of 1.3 billion yuan worth of five-year debentures
in China, raising capital for repayment of bank loans and for
investment in a diesel engine project. For statement please click
here

* GCL-Poly Energy (3800.HK) said it had fully redeemed US$350
million in secured notes last Friday, a deal funded by part of
the net proceeds raised from a recent sale of 1.3 billion new
shares. For statement please click
here

* Yorkey Optical International (2788.HK) said it had
submitted an application to relevant regulatory authorities in
Taiwan applying for a list of its Taiwan Depositary Receipts. For
statement please click
here
----------------------MARKET SNAPSHOT @ 2240 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 979.73 -2.43% -24.360
USD/JPY JPY= 94.42 -0.06% -0.060
10-YR US TSY YLD US10YT=RR 3.4721 -- 0.000
SPOT GOLD XAU= 934.75 0.21% 1.950
US CRUDE CLc1 66.61 -0.21% -0.150
DOW JONES .DJI 9135.34 -2.00% -186.06
ASIA ADRS .BKAS 116.56 -3.84% -4.65
-------------------------------------------------------------
Market Summary
*Wall St sinks as recovery hopes hurt [nN17387696]
*Oil slips 1 percent on recovery jitters [nSYD485910]
*Gold, silver slide as risk aversion lifts dollar [nLH406358]
*Safe-haven bid boosts Treasuries as stocks fall [nN17566938]
(Reporting by Parvathy Ullatil; Editing by Chris Lewis)