HK shares fall as HSBC weigh, Uni-President up

(For Shanghai stock market reports, click [.SS])
(Adds Monday midday close, details)

HONG KONG, March 3 (Reuters) - Hong Kong stocks fell across
the board on Monday, tracking losses in global equities on
concern over weakness in the U.S. economy, while investors looked
ahead to a series of major company earnings due this week.

Global lender HSBC Holdings (0005.HK) led the blue chips
lower ahead of its final results due later on Monday but hopes
that the bank may post better-than-expected earnings limited the
slide of the stock.

"Sentiment was weak, tracking softer overseas, while major
companies announcing results added uncertainty to the already
unclear-direction market," said Conita Hung, head of equity
research of Delta Asia Financial Group.

Investors were sidelined awaiting hints from China's annual
session of parliament regarding measures to tackle inflation in
the mainland, and measures to boost infrastructure after severe
winter weather, brokers said.

The benchmark Hang Seng Index .HSI, which opened down 3.45
percent, was off its low and fell 2.95 percent to 23,614.50 by
midday. The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, fell 3.32 percent to 13,468.65.

"The market is seen cautiously pessimistic and fragile," Hung
said. "The index will remain volatile with support seen at around
23,500 in the near-run."

Mainboard turnover was HK$47.23 billion (US$6.06 billion),
compared to Friday morning's HK$44.2 billion.

Market heavyweight and global lender HSBC Holdings plc
(0005.HK) sank 1.66 percent to HK$118.70, but was off its low of
HK$117. Europe's biggest bank (HSBA.L) is set to report a 12
percent rise in annual profit on Monday, led by strong growth in
Asia, but investors will want reassurance that its U.S. housing
troubles have not spread to other loans.

News on Friday that HSBC was in talks to sell about half its
branches in France for $3.2 billion gave further proof of the
bank's increasing focus on emerging markets, and it is expected
to reinforce that message when it announces its results.
[ID:nSP200043]

HSBC-controlled Hang Seng Bank 011.HK, which is also set to
release its final results on Monday, eased 0.13 percent to
HK$149.90.

Stocks of Ping An Insurance (Group) Co (601318.SS) (2318.HK),
which is planning one of the world's biggest equity sales, slid
3.54 percent to HK$58.65. The Chinese insurer is facing selling
pressure on the domestic stock market as $31 billion worth of
local-currency A shares are freed up for trade on Monday after
the end of a lockup period. [ID:nSHA132928]

Uni-President China Holdings Ltd (0220.HK) bucked a weak
market trend to rise 5.32 percent to HK$4.55 after it said it
would buy US$30 million worth of shares in listing candidate Want
Want China Holdings Ltd at the IPO price. For details please see
here

AviChina Industry & Technology Co Ltd (2357.HK) gained nearly
3 percent to HK$2.07. The company said it intended to contribute
its equity interest in Dongan Motor and Hafei Auto Co, and some
of its automobile business assets, as capital contribution for
the formation of a joint venture, which is under negotiation with
Dongfeng Motor Corp.

For details please see
here

Shares of China Eastern Airlines (0670.HK) fell 2.78 percent
to HK$4.90. The parent of Chinese flag carrier Air China
(0753.HK) (601111.SS) urged China Eastern Airlines (600115.SS) on
Saturday to review its rejection of a proposed tie-up between the
two airlines.[ID:nHKG138809]
(US$1=HK$7.8)
(Reporting by Donny Kwok; editing by Ken Wills)