Hong Kong shares seen higher after Greek deal

HONG KONG Mon Nov 26, 2012 8:05pm EST

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HONG KONG Nov 27 (Reuters) - Hong Kong shares could start higher on Tuesday after global lenders reached a deal on new debt targets for Greece, which should free up the next installment of emergency aid for its near-bankrupt economy.

After nearly 10 hours of wrangling at their third meeting on the issue in as many weeks, Greece's international lenders agreed to reduce Greek debt by 40 billion euros to 124 percent of gross domestic product by 2020 through a package of steps.

On Monday, the Hang Seng Index closed down 0.2 percent at 21,861.8, finishing at the day's low. The China Enterprises Index of the top Chinese listings in Hong Kong shed 0.4 percent.

Elsewhere in Asia, Japan's Nikkei was up 0.4 percent, while South Korea's KOSPO was up 0.9 percent at 0059 GMT.

FACTORS TO WATCH:

* Thousands of angry textile workers demonstrated in the outskirts of Dhaka on Monday after a fire swept through a garment workshop at the weekend, killing more than 100 people in Bangladesh's worst-ever factory blaze. Li & Fung said it had placed orders for garments from Tazreen Fashions that were being manufactured on the premises where the fire broke out. It said it would provide relief to victims' families, and carry out its own investigation into what caused the blaze.

* Li & Fung Ltd said the value of orders placed with Tazreen Fashions Limited in Bangladesh will not have any material impact on its financial performance. The total value of orders placed for the year with Tazreen on behalf of Kids Headquarters, a division of LF USA amounted to $111,000 and it said the company has not placed orders for other customers with Tazreen.

* People's Insurance Company of China Group will issue about 30 billion yen ($365 million) of shares in Japan in conjunction with its initial public offering on Dec. 7 on the Hong Kong Stock Exchange, the Nikkei reported.

* China Rongsheng Heavy Industries Group, the country's largest private shipbuilder, said its chairman had stepped down just three months after the company posted its sharpest fall in half-year net profit. Zhang Zhirong quit to devote more time to his personal interests and will be replaced by the company's chief executive officer, Chen Qiang, effective immediately.

* China's second-biggest insurance company, Ping An Insurance (Group) Co of China Ltd , has threatened to take legal action against the New York Times for reports that Premier Wen Jiabao's relatives had accumulated massive wealth, largely through holdings in the firm.

* Metallurgical Corporation of China Ltd said it issued the third tranche of short-term financing bills for 2012. An aggregate of 4 billion yuan of bills were issued for a term of 365 days at a par value of 100 yuan each and an interest rate of 4.46 percent.

* Silver Base Group Holdings Ltd said it has authorised distributors in various provinces and cities to open image stores for Wuliangye. It said it has a stable team of senior management and the recent resignation of certain senior management staff has not caused any negative impact on its business operations and management.

* China COSCO Holdings Co Ltd said it planned to issue $1 billion bonds with interest rate of 4 percent per annum, raising capital for its offshore subsidiaries and affiliates for their general corporate purposes. BOC International and HSBC are the joint bookrunners and the joint lead managers of the issue.(Reporting by Clement Tan and Donny Kwok; Editing by Eric Meijer)

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