Hong Kong shares seen weaker, earnings in focus

HONG KONG, Aug 16 (Reuters) - Hong Kong shares could start
lower on Thursday after China Premier Wen Jiabao said late on
Wednesday that China's economy faces big headwinds, but cooling
inflation is giving the government more leeway to manoeuvre
monetary policy.
Wen's comments followed data last week that suggested
China's economy has not stabilised despite two interest rate
cuts this year, as export growth, factory output and retail
sales further weakened in July.
Profits at China's non-financial state-owned enterprises
(SOEs) fell 13.2 percent in the first seven months of 2012 from
the same period last year, quickening from an 11.6 percent drop
between January and June, the Ministry of Finance said.

Earnings will remain a big focus on Thursday, with China
Mobile the biggest name among a clutch of companies
expected to post their first half corporate earnings results
later in the day.
Lenovo Group Ltd, the world's No.2 PC maker by
sales, posted a 30 percent rise in quarterly net profit, beating
analysts' forecasts, though it logged its slowest growth in
1-1/2 years mainly due to lacklustre demand in some emerging
markets and North America.
On Wednesday, the Hang Seng Index closed down 1.2
percent at 20,052.3, staying above chart support seen at 19,966.
This is the bottom of a tight 240-point range the benchmark has
moved since Aug. 6.
Elsewhere in Asia, Japan's Nikkei was up 0.9
percent, while South Korea's KOSPI was down 0.1 percent
at 0040 GMT.

FACTORS TO WATCH:
* Tencent Holdings, China's biggest Internet
company by revenue, said on Wednesday its quarterly profit rose
by its fastest pace in a year as sales got a boost from its
online games segment despite a slowing Chinese economy.

* Meat processor China Yurun Food posted a 93
percent slump in first half net profit from a year earlier.

* Chinese medical device manufacturer Shandong Weigao Group
posted a 20.3 percent increase in first half net
profit from a year earlier.
* Lenovo Group Ltd, the world's No.2 PC maker by
sales, posted a 30 percent rise in quarterly net profit, beating
analysts' forecasts, though it logged its slowest growth in
1-1/2 years mainly due to lacklustre demand in some emerging
markets and North America. [ID: nL4E8JA4VZ]
* Tsingtao Brewery Co Ltd , China's
second-largest beer maker by volume, reported a 1.8 percent rise
in first-half net profit to 1.01 billion yuan ($159 million) as
a big marketing drive was offset by a weakening domestic
economy. The market had expected a net profit of 1.1 billion
yuan.
* Hong Kong conglomerate Hutchison is making
"painfully slow" progress in persuading the European Commission
of its case to take over telecoms operator Orange
Austria, which it said was hurting its business case for the
acquisition.
* Oil giant Sinopec Group, parent of Sinopec Corp,
along with Chinese banks are in talks to put up to $1 billion
in a Texas clean energy project, in what would be one of the
biggest investments by Chinese companies in the U.S. power
sector, the Wall Street Journal reported on Wednesday.

* Macau invalidated a land sale to Chinese Estates Holdings
Ltd, controlled by billionaire Joseph Lau, and alleged
that unlawful acts were involved in the deal, in the second
high-profile scandal to hit a Hong Kong developer this year.

* Internet video and mobile gaming producer VODone Limited
said it proposed to seek a separate listing of its
mobile game unit China Mobile Games and Entertainment Group
Limited (CMGE) on Nasdaq by way of distribution in specie of its
ADSs, representing about 6.7 percent of the CMGE shares. For
statement, here
* Department store operator Maoye International Holdings Ltd
said its profit increased for the first half of 2012
rose 55.7 percent to 467.9 million yuan, but the profit actually
rose 5.7 percent to 309.2 million yuan excluding non-operating
gains and losses. For statement, here
* Chinese footwear distributor Daphne International Holdings
Ltd said its first half net profit rose 9.6 percent to
HK$483 million while turnover grew 29 percent to HK$5.08
billion. For statement, here
* Property developer Chinese Estates Holdings Ltd
said its January-June net profit fell to HK$4.16 billion from
HK$4.55 billion. For statement, here

(Reporting by Clement Tan and Donny Kwok; Editing by Eric
Meijer)