HK shares expected to drop with banks seen hard-hit

HONG KONG, April 21 (Reuters) - Hong Kong shares are expected
to drop on Tuesday amid a global sell-down in banking stocks
after Bank of America (BAC.N) raised concerns about credit
quality deterioration.

The stock plunged more than 24 percent on Monday despite
reporting a rise in profit for the first quarter as its chief
executive warned the bad credit environment was getting worse.

American depository receipts (ADRs) in Hong kong-listed
companies joined the slump on Wall Street overnight with global
lender HSBC (HBC.N) (0005.HK) sliding 7.7 percent, while China
Mobile (CHL.N) (0941.HK), which reported a 5.2 percent increase
in its first quarter net profit on Monday, sank 4.5 percent.

The benchmark Hang Seng Index .HSI closed 1 percent higher
at 15,750.91 on Monday as Chinese stocks led the charge on
expectations of improved corporate earnings in 2009

STOCKS TO WATCH-

* Enric Energy Equipment Holdings (3899.HK), which had
previously made a takeover offer with CIMC Hong Kong for Target
Co China, has reduced its offer for Target Co China to HK$3 per
share from HK$4.49 per share, citing market conditions and
economic environment. For statement please click
here

* China National Resources Development Holdings (0661.HK) on
Tuesday said it had discovered 400,000 tonnes of copper reserves
in its mine in Xinjiang and 500,000 tonnes in the northern and
southern copper belts. For statement please click
here

* Chinese property developer Beijing North Star (0588.HK)
said its first-quarter net profit rose to 171.3 million yuan,
compared with 84.5 million yuan a year earlier. For statement
please click
here

* Xinjiang Xinxin Mining Industry Co (3833.HK) said it had
agreed to acquire a 57 percent equity interest in Zhongxin Mining
for 33.1 million yuan from Xinjiang Investment & Development
(Group) Co . For statement please click
here
----------------------MARKET SNAPSHOT @ 2247 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 832.39 -4.28% -37.210
USD/JPY JPY= 98.04 0.08% 0.080
10-YR US TSY YLD US10YT=RR 2.8562 -- 0.000
SPOT GOLD XAU= 884.05 -0.01% -0.100
US CRUDE CLc1 45.8 -0.17% -0.080
DOW JONES .DJI 7841.73 -3.56% -289.60
ASIA ADRS .BKAS 95.58 -4.00% -3.98
-------------------------------------------------------------

MARKETS SUMMARY
*Wall St sinks on banks' woes; IBM drops late [nN20421816]
*Oil drops over 8 pct on economic outlook, dollar [nSYD428032]
*Increased anxiety lifts dollar, euro slumps on ECB [nN20408601]
*Treasuries rally as bank fears clobber Wall Street [nN20563843]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)