HK shares seen in rangebound; BEA in focus

HONG KONG, Nov 12 (Reuters) - Hong Kong stocks are expected
to trade in a narrow band on Thursday, aided by gains on overseas
markets, while concern about steep valuations after the recent
rally may prompt profit-taking and keep investors away.

"The market has been rising very fast in the past few days
and it is seen to be the time for it (the market) to digest the
recent gain," said Francis Lun, a general manager of Fulbright
Securities.

The market is set to consolidate before building up momentum
to edge up further, traders said.

The benchmark Hang Seng Index .HSI closed up 1.61 percent,
or 359.05 points, at 22,627.21 on Wednesday, its highest close in
15 months. The blue chip index had risen nearly 800 points, or
3.7 percent, so far this week.

The China Enterprises Index of top locally listed mainland
Chinese stocks rose 0.7 percent to 13,460.43.

STOCKS TO WATCH:

* Transportation and financial services firm NWS Holdings
(0659.HK) said it was in talks to sell part or all of its 61.86
percent interest in Taifook Securities Group (0665.HK), but no
agreement had yet been reached. For statement please click
here

* A 15.2 percent jump in Bank of East Asia (0023.HK) shares
may have come on speculation that a Malaysian conglomerate was
preparing a bid for the Hong Kong bank, local media reported on
Thursday. [ID:nHKG371024]

* Tencent Holdings (0700.HK), China's most valuable Internet
firm, faces challenges from regulation and competition to
maintain its breakneck pace of growth after reporting a near
doubling in third-quarter profits. [ID:nHKG316200]

* Bank of China (601988.SS) (3988.HK) aims to lend more than
twice as much this year as in 2008, the top executive of the
country's biggest foreign exchange lender said on Wednesday.
[ID:nPEK343169]

* Electronics product maker Tomorrow International (0760.HK)
said it planned to buy an 85 percent interest in seven gold mines
in the Republic of Kazakhstan that were worth more than HK$10
billion ($1.3 billion), in a deal to be settled by cash, issuance
of convertible notes and shares. For statement please click
here
----------------------MARKET SNAPSHOT @ 2328 GMT -------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1098.51 0.5% 5.500
USD/JPY JPY= 89.92 0.09% 0.080
10-YR US TSY YLD US10YT=RR 3.4781 -- 0.000
SPOT GOLD XAU= 1115.8 -0.15% -1.650
US CRUDE CLc1 79.24 -0.05% -0.040
DOW JONES .DJI 10291.26 0.43% 44.29
ASIA ADRS .BKAS 125.89 0.95% 1.19
--------------------------------------------------------------

MARKET SUMMARY
* Market gains on homebuilder forecast, China data [nN11362394]
* Oil rises lightly, market eyes dollar, China [nSIN477862]
* Dollar off 15-month low, sterling under pressure [nT348494]
* Treasuries prices steady after 10-year note sale [nN10329161]
(US$1=HK$7.75)
(Reporting by Donny Kwok; editing by Ken Wills)