HK shares may rise; China Mobile in focus

HONG KONG, Dec 28 (Reuters) - Hong Kong stocks are set to
gain on Monday, slightly tracking stronger overseas markets and a
firmer local currency, with property issues in focus ahead of a
gonvernment land auction this afternoon.

"Expectations that the auction will draw a strong response
may give property issues another boost," said Patrick Yiu, a
director at CASH Asset Management. "But the upside of the local
market is likely to be capped on uncertainty over China Mobile."

China Mobile (0941.HK), the world's largest mobile carrier by
subscribers, said on Saturday its vice chairman Zhang Chunjiang
was under investigation for breach of rules. [ID:nLDE5BP05X]

Two plots of land for residential purposes in Hong Kong are
put for sale through a land auction on Monday. Market watchers
expected the auction to draw keen competition among developers.

The benchmark Hang Seng Index .HSI gained for a third
straight session on Thursday, ending up 0.88 percent, or 188.26
points, at 21,517 in a half-day of trading, its highest close in
over a week.

The China Enterprises Index .HSCE of top locally listed
mainland Chinese stocks rose 1.16 percent to 12,673.74.

STOCKS TO WATCH:

* Chinese developer Sino-Ocean Land (3377.HK) said it would
sell 934 million new shares, or 16.57 percent of its enlarged
share capital, at HK$6.23 each to China Life Insurance (2628.HK),
raising HK$5.82 billion ($751 million) for working capital. The
issue price represented an 8.38 percent discount to the previous
close. For statement please click
here

* Fosun International (0656.HK) said its property unit
Shanghai Forte Land Co Ltd 2337.HK would record a 700 million
yuan ($102.5 million) gain from the sale of a 75 percent stake in
a non-residential project in China's Tianjin to a third party,
HNA Group, for about 2 billion yuan. For statement please click
here

* China Construction Bank (0939.HK) said it had completed
issuance of 20 billion yuan in 15-year subordinated bonds in the
national interbank bond market, raising funds to replenish the
supplementary capital of the bank. For statement please click
here

* China Resources Gas Group (1193.HK) said it would buy a 25
percent stake in a city gas distribution joint venture in
Chongqing for 1.16 billion yuan, in a bid to expand its core
business. Trading in the shares of the company will resume on
Monday. For statement please click
here
----------------------MARKET SNAPSHOT @ 2254 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1126.48 0.53% 5.890
USD/JPY JPY= 91.18 -0.35% -0.320
10-YR US TSY YLD US10YT=RR 3.8048 -- 0.000
SPOT GOLD XAU= 1103.8 0.00% 0.000
US CRUDE CLc1 78.05 0.00% 1.380
DOW JONES .DJI 10520.10 0.51% 53.66
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(Reporting by Donny Kwok; Editing by Jonathan Hopfner)