HK shares seen higher after Citi earnings

HONG KONG, July 21 (Reuters) - Hong Kong shares are expected to extend last week's three-day rally, with smaller-than-expected losses at Citigroup likely to calm credit market concern and retreating oil prices seen helping airlines and refiners.

Last week, the Dow snapped four weeks of losses as financial stocks rallied after top U.S. government officials outlined a plan to shore up mortgage finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N) and the SEC announced rules to curb short selling.

Oil stayed below $130 per barrel, after recording its steepest weekly fall since December 2004 last week, on easing tension between Iran and the West, and growing demand concerns.

Hong Kong shares ended Friday's volatile session 0.6 percent higher, as gains in global lender HSBC Holdings (0005.HK) and local blue chips offset losses in resource counters.

STOCKS TO WATCH

* China Unicom (0762.HK) said late on Friday its aggregated number of GSM cellular service subscribers increased to 127.599 million in June 2008 from 126.525 million subscribers in May. Its CDMA subscribers rose to 43.169 million in June from 43.153 million in May.

* Skyworth Digital Holdings Ltd (0751.HK) said last Friday it recorded a 45.3 percent year-on-year rise in its total sales volume of television sets (TV) in June 2008, including a 1.1 percent drop in the TV sales volume for the China market and a 268.9 percent jump for the overseas market.

* Sa Sa International Holdings (0178.HK) on Friday said its controlling shareholder, Simon Kwok, "is not currently considering" a disposal of his stake in the company. Sa Sa made the statement in response to a newspaper report that Kwok was considering a possible sale of his stake in the firm which might lead to a general offer. For statement please see here

* China CITIC Group may raise its privatisation offer for Citic International Financial Holdings 0183.HK amid pressure from shareholders, the South China Morning Post reported, quoting sources.

In June Chinese state-owned financial conglomerate CITIC Group offered to buy its small Hong Kong-listed arm CIFH for $1.4 billion after Spanish lender BBVA (BBVA.MC), Spain's second-largest lender, said last week it was looking to double its stakes in China CITIC Bank (0998.HK) and CIFH.

CIFH will be delisted and folded into mainland based China CITIC Bank under proposed terms announced on Wednesday.

* Fashion group Esprit Holdings Ltd (0330.HK) says its deputy chairman and group chief financial officer John Poon has resigned with effect from July 20. [ID:nHKG286192] -----------------MARKET SNAP SHOT @ 22:58 GMT--------------- --------------------------------------------------------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1,260.68 0.03% 0.360 USD/JPY JPY= 106.94 0.01% 0.010 10-YR US TSY YLD US10YT=RR 4.089 -- 0.000 SPOT GOLD XAU= $955.10 0.08% 0.800 US CRUDE CLc1 $129.92 0.81% 1.040 DOW JONES .DJI 11496.57 0.44% 49.91 ASIA ADRS .BKAS 144.38 -1.05% -1.53 --------------------------------------------------------------> > SE Asian Stocks-Lower on week, Thais at 18-mth low [.SO] > US STOCKS-Techs sink on Google, Microsoft miss the mark [.N] > Oil falls, down 13 pc from peak on Iran, demand [O/R] > FOREX-Dollar boosted by Citi results, sentiment shaky [USD/] > Bonds fall for 3rd day on easing credit concerns [US/] > Gold ends lower as global market fears lessen [GOL/]

(Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)