HK shares seen weak in line with global markets

HONG KONG, June 18 (Reuters) - Hong Kong shares may remain
weak after a three-session fall with no support expected from
Wall Street, which ended mixed on the reduction of credit ratings
and outlook for 22 U.S. banks, and U.S. financial regulation
reform plans.

Concern over the spread of the H1N1 influenza virus could
also weigh on sentiment as the city confirmed more than 50 new
cases on Wednesday.

Banks will continue to sag under pressure, although mainland
Chinese banks are expected to remain firm.

"Overseas markets fell, and the flu threat is unstoppable, so
I don't see any support for the local market for now," said
Fulbright Securities general manager Francis Lum.

He said the index could drop below the 18,000-point level in
Thursday's trade.

The benchmark Hang Seng Index .HSI fell 80.90 points or 0.5
percent to close at 18,084.60 on Wednesday.

STOCKS TO WATCH:

* China Eastern Airlines (600115.SS) (0670.HK) on late
Wednesday said it would buy 20 A320 aircraft from Airbus (EAD.PA)
with a total list price of 9.92 billion yuan ($1.45 billion). For
story please click www.hkexnews.hk/listedco/
listconews/sehk/20090617/LTN20090617452.pdf

* Jiangxi Copper (0358.HK) on Wednesday said repair work for
its Guixi smelter, which has an annual production capacity of
900,000 tonnes of copper cathode, had been completed. The company
said it expected to produce 800,000 tonnes copper cathode in
2009. It gave no further details. For statement, click
here
sehk/20090617/LTN20090617353.pdf

* Chaoda Modern Agriculture (0682.HK) on Thursday said it
planned to sell up to 388 million shares, or 12.8 percent of its
enlarged share capital, to professional and institutional
investors at HK$4.60 each. The sale is aimed at raising HK$1.78
billion (US$228 million) for repayment of an outstanding
principal amount of its 7.75 percent guaranteed senior notes upon
maturity on February 8, 2010, and for general working capital.

Trading in the shares will resume on Thursday.
here

* Sinotrans Ltd (0598.HK) on Thursday said it would set up a
15 percent owned joint venture with its parent company and other
partners with a registered capital of 500 million yuan, for the
provision of financial services and finance consultancy services,
and credit verification to companies of its parent. For statement
please click
here

----------------------MARKET SNAPSHOT @ 2245 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 910.71 -0.14% -1.260
USD/JPY JPY= 95.64 -0.02% -0.020
10-YR US TSY YLD US10YT=RR 3.6862 -- 0.000
SPOT GOLD XAU= 940.7 0.25% 2.300
US CRUDE CLc1 70.91 -0.17% -0.120
DOW JONES .DJI 8497.18 -0.09% -7.49
ASIA ADRS .BKAS 107.98 0.23% 0.25
-------------------------------------------------------------

MARKETS SUMMARY
*Oil rises on stock market, US inventory data [nSP290171]
*Nasdaq advances with tech, but banks curb Dow, S&P [nN17291955]
*Treasury bonds pare gains as stocks march higher [nN17479686]
*Dollar drops as tame inflation dents rate hike view [nN17353083
(Reporting by Nerilyn Tenorio; Editing by Chris Lewis)