HK shares expected to gain; HSBC, CITIC Pacific in focus

HONG KONG, April 6 (Reuters) - Hong Kong shares are seen
moving higher on Monday, with HSBC (0005.HK) set for another
day of gains following the satisfactory subscription to its
record rights issue.

HSBC investors bought 96.6 percent of the shares offered in
a $18.9 billion rights issue, Europe's biggest bank said on
Sunday. Demand in Hong Kong -- where HSBC is revered and known
among investors as "big elephant" -- was 98.2 percent.

HSBC (HSBA.L) said it sold 4.89 billion shares with
existing shareholders and expects to sell the 172.7 million
shares not taken up -- or the "rump" -- on Monday, to raise
12.5 billion pounds net of expenses. The rump is likely to be
placed early on Monday.

"In the near term there is still some bouyancy left in the
market. Hong Kong's banking authority has been increasing the
liquidity in the system and that should also support the
market," said Ben Kwong, COO with KGI Asia.

"Things may change once U.S. companies start coming out
with their first quarter earnings and HSBC new shares start
trading on Thursday," he said. Kwong sees the main index
gaining to 14,800 points on Monday.

The benchmark Hang Seng Index .HSI edged up to a
three-month high of 14,545.69 on Friday, lifted by hopes for
economic stabilisation in the United States and faster recovery
in China.

STOCKS TO WATCH-

* Chinese conglomerate Citic Pacific (0267.HK) said on
Friday that police had searched the company offices looking for
information regarding past foreign exchange contracts.

The company's directors are being investigated for alleged
false statements and conspiracy to defraud in connection with
contracts entered into by the company in 2007 and 2008, Citic
Pacific said in a statement.

Last month, the steel-to-property conglomerate reported a
bigger-than-expected year loss of HK$12.7 billion from betting
the wrong way on the Australian dollar. The loss for 2008
included a HK$14.6 billion deficit from foreign exchange
contracts.

The company has asked the Hong Kong stock exchange for
trading in its shares to be resumed on Monday. Trading was
suspended Friday.

* Top Chinese cement maker Anhui Conch Cement (0914.HK)
(600585.SS) said one of its senior executives was being
investigated for dealings in the company's shares "which were
alleged to be in breach of relevant rules".

Wang Jianchao resigned as deputy general manager on Friday,
Anhui Conch said in a statement. The statement contained no
other details, except that the company would make further
announcements when appropriate.

* Chinese property developer Shimao Property Holdings
(0813.HK) said on Sunday it generated 4.55 billion yuan ($665.8
million) in revenues from apartment sales in the first quarter
of 2009, up 346 percent from the same period a year ago.
[ID:nHKG71996]

* Chinese real estate developer Agile Property Holdings
(3383.HK) said on Sunday it had secured a 10 billion yuan
($1.46 billion) credit line from the Industrial and Commercial
Bank of China (601398.SS)(1398.HK). [ID:nHKG255336]

* Cheung Kong Infrastructure Holdings (CKI) (1038.HK) said
over the weekend it planned to acquire up to HK$2.2 billion
($284 million) in debt securities issued by parent Hutchison
Whampoa Ltd (0013.HK) in the secondary market. [ID:nHKG73168].

For statement, click
here
04031225.pdf

* Bank of East Asia (0023.HK) is in talks with ICBC to take
full control of their jointly held securities unit ICEA
Securities as part of its move to expand wealth management
business, said the South China Morning Post citing a source.

-------------------MARKET SNAPSHOT @ 2245 GMT
------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 842.5 0.97% 8.120
USD/JPY JPY= 100.49 0.22% 0.220
10-YR US TSY YLD US10YT=RR 2.8945 -- 0.000
SPOT GOLD XAU= 893.55 0.12% 1.050
US CRUDE CLc1 53.13 1.18% 0.630
DOW JONES .DJI 8017.59 0.50% 39.51
ASIA ADRS .BKAS 97.49 0.66% 0.64
------------------------------------------------------------

MARKETS SUMMARY
*Dow ends above 8,000; best 4-wk run since 1933
[nN03359014]
*Oil settles slightly lower, job report weighs
[nN03344718]
*Treasury gives guidance on Build America Bonds
[nN03405392]
*US dollar rises vs yen after US jobs report
[nN03362926]
(Reporting by Parvathy Ullatil; Editing by Ian Geoghegan)