HK shares set to rise; financial shares in focus

HONG KONG, April 7 (Reuters) - Hong Kong shares are expected
to open higher on Wednesday, tracking firmer overseas markets,
with financial and commodities issues seen in demand as improving
sentiment boosts risk appetite.

"The index may try an upside at around 21,900 after gains in
Wall Street, with financial stocks leading the rise," said Conita
Hung, head of equity research of Delta Asia Financial Group.

"Commodities and shipping stocks may also benefit on some
sign of economic improvement."

Banks are seen in focus with uncertainty reduced after major
Chinese banks disclosed their fund raising plans.

China Construction Bank (CCB) (0939.HK) (601939.SS), the
country's second-biggest lender, plans to raise about 75 billion
yuan ($11 billion) through share sales this year to replenish its
capital, Bloomberg News reported on its website, citing
unidentified sources. [ID:nTOE635046]

China Life (2628.HK) is due to announce results later in the
session.

The benchmark Hang Seng Index .HSI ended up 1.4 percent or
297.65 points at 21,537.00 on Thursday prior to the Easter
holiday, its highest closing level in more than two months.

STOCKS TO WATCH:

* China Unicom (0762.HK) said on Tuesday it had completed the
issue of the first tranche of commercial paper for 2010 with an
amount of 15 billion yuan and a maturity of 365 days, and the
issue of the first tranche of a three-year promissory note of 3
billion yuan. For statement please click
here

* Min Xin Holdings (0222.HK) said the China Banking
Regulatory Commission had approved the change of Xiamen
International Bank to a city commercial bank from a Sino-foreign
joint venture, with Min Xin's stake in the bank to be reduced to
20 percent or less from the current 36.75 percent to comply with
regulations in China. For statement click
here

* Hainan Meilan International Airport (0357.HK) said it would
buy a 54.5 percent stake in HNA Airport, an airport investment,
operation management firm operating Sanya Phoenix
Airport, for 2.2 billion yuan. For statement please click
here

* Chinese developer Greentown China Holdings (3900.HK) said
it would buy a property development project in Jinan City in
Shandong province for 1.24 billion yuan. For statement click
here

* Coke and coal trading firm Huscoke Resources (0704.HK) said
it expected to record a profit for 2009 compared with a loss in
the previous year, helped by a coal related ancillary business it
acquired in late 2008 and as demand for coal-related products
improved due to China's economic recovery. For statement click
here

* Dongfang Electric (1072.HK) revised up its earnings
estimates, expecting its 2009 profit to rise over 780 percent
from a year earlier, up from the previous forecast of an 650
percent increase. It said its profit was at 176 million yuan in
2008 but gave no further details. For statement click
here
----------------------MARKET SNAPSHOT @ 2259 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1189.44 0.17% 2.000
USD/JPY JPY= 93.81 0.05% 0.050
10-YR US TSY YLD US10YT=RR 3.9564 -- 0.000
SPOT GOLD XAU= 1134.25 0.09% 1.050
US CRUDE CLc1 86.69 -0.17% -0.150
DOW JONES .DJI 10969.99 -0.03% -3.56
-------------------------------------------------------------
> S&P, Nasdaq lifted by banks, Fed minutes; Dow slips [.N]
> Euro hurt by Greece worries; Canadian dlr hits parity [USD/]
> Bonds rise on bargain-hunting, Greece worries [US/]
> Gold hits one-month high despite dollar rise [GOL/]
> Oil rises to new 18-mth high, eyes inventory data [O/R]
(Reporting by Donny Kwok; editing by Jonathan Hopfner)