Hong Kong shares seen weaker, weighed by banks

HONG KONG, July 30 (Reuters) - Hong Kong stocks are set to
open lower on Friday tracking softer overseas markets with banks
likely to lead the fall on profit taking.

U.S. stocks closed down on Thursday as tech companies' weak
outlooks fuelled recovery concerns, while downbeat comments from
a Federal Reserve official discouraged buying. [ID:nN29116576]

The benchmark Hang Seng .HSI closed a notch higher at
21,093.8 on Thursday, underpinned by strong Chinese markets. The
Shanghai market rose to a two-month high as steel companies
rallied on expectations that China's government will maintain its
loose monetary policy through the rest of the year.

In the region, Japan's Nikkei .N225 fell 1.3 percent on
Friday while South Korea's KOSPI .KS11 was down 0.72 percent as
of 0135 GMT.

STOCKS TO WATCH:

- France's EDF (EDF.PA), the world's second-largest utility,
agreed to sell its British power grids for more than 5.5 billion
pounds, two people with knowledge of the matter told Reuters.
Hongkong Electric (0006.HK) and Cheung Kong Infrastructure
(1038.HK) won the auction for the three power distribution grids
and the private power networks. [ID:nSGE66S0P9]

- Wynn Macau Ltd (1128.HK) said its total operating revenues
jumped 74 percent to $714.4 million for the second quarter of
2010, while net profit rose to $132.5 million from $63.27
million. For statement click
here

- Aluminum Corp of China Ltd (Chalco) (2600.HK) has agreed to
invest $1.35 billion in a joint venture with mining giant Rio
Tinto (RIO.AX) to develop iron ore in Africa, its first
non-aluminium investment overseas. [ID:nTOE66S071]

- BP (BP.L) has tapped HSBC (0005.HK)(HSBA.L) to sell its
stake in the Nam Con Son gas project in Vietnam as it scrambles
to hive off $30 billion of assets to pay for the clean-up of the
worst oil spill in U.S. history, three sources said.
[ID:nTOE66S02X]

- China's Ministry of Commerce has approved a plan by the
parent of Geely Automobile (0175.HK) to acquire Ford's (F.N)
Volvo unit, the official Xinhua news agency said on Thursday.
[ID:nTOE66S09M]

- Shanghai Airlines will leave Star Alliance at the end of
October, after bigger rival China Eastern Airlines (0670.HK) took
it over for $1.3 billion last year, state media said on Thursday.
[ID:nTOE66S08B]

- Bunker fuel trader Brightoil Petroleum (0933.HK) said it
would sell 300 million shares at HK$3.45 each, or a 8.97 percent
discount to the previous close, to a major shareholder, raising
HK$1.02 billion to finance existing businesses and for working
capital. For statement click
here

- Yanzhou Coal Mining Co Ltd (1171.HK) said it estimated its
first half profit to rise 35 percent from the same period a year
ago, lower than its previous estimation of over 100 percent
increase. The discrepancy was due to fluctuations of the exchange
rate which led to an exchange loss for a U.S. dollar denominated
loan. For statement click
here

MARKET SUMMARY
*Wall St falls on tech outlook worries [nN29116576]
*Dollar on defensive, eyes on U.S. GDP [nTOE66S09U]
*Bonds mostly gain despite soft 7-yr auction [nN2961938]
*Oil pauses from strong gain near $78 ahead of US GDP[nSGE66T00D]
(Reporting by Donny Kwok; Editing by Jacqueline Wong)