HK stocks seen lower, China Railway debut eyed

HONG KONG, March 13 (Reuters) - Hong Kong stocks may ease on
Thursday on concern that a credit bailout by global central banks
will fail to give a sustained boost to financial markets, but
infrastructure play China Railway Construction Corp (1186.HK)
looks set to make a respectable debut.

One broker said China Railway had traded as high as HK$12.50
in the grey market, versus its IPO price of HK$10.7.

"It should do okay especially when the market doesn't have
anything else to speculate on," said Steve Leung, director at UOB
Kay Hian Holdings.

China Railway, which made a weaker-than-expected debut in
Shanghai on Monday, priced the Hong Kong portion of its IPO at
the top of a range, raising a total of $5.4 billion, after
drawing record demand [ID:nHKG188525]. The company's shares
closed up 28 percent in Shanghai on their debut.

Mainland infrastructure plays have been touted as among this
year's best bets as China's demand for more and better roads and
transport systems remains strong.

As for the broad market, Leung said the benchmark Hang Seng
Index .HSI may lose up to 200 points on the open but may close
higher on the day if mainland stock markets stabilise.

"There will be profit-taking after the U.S. closed lower. We
want to see what the impact of the Fed plan will be and there
will be speculation on the Fed rate cut."

The U.S. central bank is set to begin its rate-setting
meeting on Tuesday.

The Hang Seng Index ended up nearly 2 percent at 23,422.76 on
Wednesday. The China Enterprises Index of Hong Kong-listed
mainland companies .HSCE, or H shares, finished up 2.3 percent
at 12,877.35.

STOCKS TO WATCH:

* Belgian-Dutch financial services group Fortis (FOR.BR) was
in talks with shareholder China's Ping An Insurance (2318.HK)
over a deal to boost its solvency, Belgian daily De Standaard
said on Wednesday.

Fortis was negotiating the sale of a stake in its fund
managing unit Fortis Investments, which will increase its
solvency by 2 billion euros ($3.1 billion), De Standaard said
[ID:nL12627451].

* Sinotrans Shipping Ltd (0368.HK), which posted an 18.4
percent rise in yearly profit to US$140.89 million for 2007, said
the firm was optimistic in its prospects in 2008 due to
continuous growth in the global economy and rapid economic
development in China with robust domestic demand for imported
iron ore, coal and imported crude oil.

* Yunan Enteprises Holdings Ltd (0455.HK) said it had entered
into a framework agreement with Yunnan Non-Ferrous Metals Bureau
and Tianda Group to jointly explore and develop mineral resources
in Yunnan Province, including a project for general exploration
of copper, lead and zinc mining in Huize County.

* HKC (Holdings) Ltd (0190.HK) said it bought 30 percent of a
property development project in Shanghai for 700 million yuan,
raising its interest in the project to 60 percent.

* Hutchison Whampoa Ltd's (0013.HK) Hutchison
Telecommunications International (2332.HK) said its Israeli
mobile communications operating arm Partner Communications Co Ltd
(PTNR.TA) had announced the dismissal of a purported class action
filed against the company.

* The head of ZTE Corp's (0763.HK) U.S. business said on
Wednesday he had not held any talks about an acquisition or
partnership with Motorola Inc (MOT.N), quashing speculation the
Chinese telecommunications equipment maker would buy Motorola's
handset business [ID:nN12236576].

FACTORS TO WATCH:
* Nikkei .N225 falls 1.1 pct, exporters down [.T]
* U.S. stocks slip on rethink of Fed plan, oil over $110 [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil rallies to record $110 as dollar plumbs new low [O/R]
* Dollar hits 12-yr low vs yen, record low vs euro [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)

TOM Online (TOMO.O)8282.HK +2.7

China East Air (CEA.N)(0670.HK) -5.5

Semiconductor Mfng (SMI.N)(0981.HK) -5.6

Huaneng Power (HNP.N)(0902.HK) -6.0

China South Air (ZNH.N)(1055.HK) -6.2
(US$1=HK$7.8)
(Reporting by Rita Chang; editing by Anne Marie Roantree)