HK stocks seen lower as investors lock in profits

HONG KONG, April 8 (Reuters) - Hong Kong stocks are expected
to fall on Tuesday as investors take profits a day after the
benchmark hit a five-week closing high, with funds tracking
mainland China markets in focus.

"The U.S. market is flat which means there is no driving
force. The market is ripe for some profit taking," said Francis
Lun, general manager of Fulbright Securities.

He expects the market will fall 300 points.

"We will still look at funds investing in mainland China,
such as A50 China tracker fund (2823.HK) and China Dragon Fund
(0820.HK). We have seen huge turnover in these issues."

The benchmark Hang Seng index .HSI rose 1.3 percent to
24,578.76 on Monday.

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, climbed 2.15 percent to
13,419.88.

STOCKS TO WATCH:

* China Shenhua Energy Co Ltd (1088.HK) (601088.SS), the
world's most valuable coal producer, said on it planned to
benchmark its 2008 export prices against Australia's Xstrata's
(XTA.L) $125 a tonne.

* Fertiliser maker Sinofert Holdings Ltd (0297.HK) said it
would buy Jilin Fertiliser in Jilin province and inject a further
149.77 million yuan into Jilin Fertiliser for a 90.81 percent
stake in the urea and compound fertiliser producer. For details
please see
here

* Sinopec Shanghai Petrochemical Co Ltd (0338.HK) said it
would suffer loss in the first quarter of 2008 as the gap between
soaring crude prices and state-capped fuel prices widens.
For details please see
here

* Jilin Qifeng Chemical Fiber Co Ltd (0549.HK) said it
expected to see a significant decline or may even record a net
loss for 2007 due to factors including increases in raw materials
costs and stagnant demand for acrylic fibre products in China.
For full statement please see
here

FACTORS TO WATCH:
* Nikkei .N225 slips as investors lock in profits [.T]
* U.S. stocks flat as earnings fears temper credit hopes [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil jumps nearly $3 on European refinery trouble [O/R]
* Dollar rises versus yen as investor take on risk [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

KEY HK ADR MOVERS (by % change)

China Telecom (CHA.N)(0728.HK) +5.3

PetroChina (PTR.N)(0857.HK) +3.0

Sinopec (SNP.N)(0386.HK) +2.8

China East Air (CEA.N)(0670.HK) +2.4

China Unicom (CHU.N)(0762.HK) +2.4
(US$1=HK$7.8)
(Reporting by Judy Hua; Editing by Anne Marie Roantree)