Hong Kong shares seen higher amid thin turnover

HONG KONG, Dec 29 (Reuters) - Hong Kong shares are expected
to rise on Monday, with resources counters likely to get a boost
from higher oil prices and a rally in other commodity prices, but
volumes are likely to stay slender at the start of another
truncated trading week.

Crude oil prices moved close to $40 per barrel in Asian trade
on fears of supply disruptions after violence flared up between
Israel and Hamas.

Shares in China Eastern Airlines (600115.SS) (0670.HK) will
be in focus after a senior executive with the company confirmed
the air carrier was seeking further government aid, in addition
to a 3 billion yuan ($439 million) capital injection announced
earlier this month.

China Eastern said on Thursday the share placement plan would
be significantly adjusted and that its domestic A shares would be
suspended from trade in Shanghai until Dec. 30. [ID:nSHA345430]

The benchmark Hang Seng Index .HSI slid for four
consecutive sessions, ahead of the long Christmas weekend, to
rest at 14,185.14, but brokers expect the index to claw its way
back up to 15,000 points in this week's holiday-shortened trade.

STOCKS TO WATCH-

* CITIC Group has become the majority shareholder in CITIC
Pacific (0267.HK), holding 57.56 percent of the company, after it
completed a conversion of convertible bonds into 1.45 billion
shares of the Hong Kong-listed firm. For a statement, please see
here

* GOME Electrical Appliances (0493.HK), the electronics
retailer once dubbed China's "Best Buy", has suspended former
chairman Huang Guangyu and his wife from their executive duties
amid a police probe into the once high-flying tycoon's financial
activities. Trading in GOME shares, halted since Nov. 24, will
remain suspended until further notice. [ID:nHKG188047]

* China Construction Bank (0939.HK) said on Sunday Luo Zhefu
had resigned as a director and vice president of the bank with
effect from Dec 26. For a statement, please see
here

* Sinofert (0297.HK) said on Sunday its 18.49 percent-owned
Qinghai Salt Lake Potash (000792.SZ) would merge with Qinghai
Salt Lake Industry Group 000578.SZ. Qinghai Salt Lake Potash
will issue new shares in exchange for and cancellation of
existing shares of Salt Lake Industry, a firm currently 22.74
percent-owned by Sinofert's controlling shareholder Sinochem
Corporation. For details please see
here

* Greentown China Holdings Ltd (3900.HK) said on Sunday it
had not invested in Pacific Holdings Inc 8902.T, rejecting a
media report that the Chinese property developer was buying a
stake in the Japanese real estate fund. [ID:nHKG286684]
----------------------MARKET SNAPSHOT @ 2325 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 872.8 0.54% 4.650
USD/JPY JPY= 90.59 -0.13% -0.120
10-YR US TSY YLD US10YT=RR 2.1335 -- 0.000
SPOT GOLD XAU= 876.5 1.12% 9.700
US CRUDE CLc1 38.74 2.73% 1.050
DOW JONES .DJI 8515.55 0.56% 47.07
-------------------------------------------------------------
> Wall St gains on energy stocks and GMAC [.N]
> Dollar rises versus yen as Japanese data disappoint [USD/]
> Bonds rise with safe-haven bid in quiet trade [US/]
> Gold mostly steady, supported on weak dollar [GOL/]
> Oil above $37 on UAE supply cut, thin trade [O/R]
(Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)