HK shares set to rise tracking Wall St, commodities

HONG KONG, Aug 19 (Reuters) - Hong Kong shares are seen
firmer on Wednesday after positive earning momentum restored
confidence among U.S. investors and energy and metal prices
rebounded.

Chinese bank shares may hit the spotlight as Bank of
Communications (3328.HK)(601328.SS), China's fifth-biggest
lender, kicks off the earnings season for mainland banks on
Wednesday.

Chinese banks boosted their lending at a record pace in the
first half of the year but are set to report lower first-half
earnings on compressed interest margins.

BoCom will be followed by the world's two biggest banks by
market value: Industrial and Commercial Bank of China
(1398.HK)(601398.SS) on Thursday and China Construction Bank
(0939.HK)(601939.SS) on Friday.

Crude oil rose nearly $1 to above $70 a barrel on Wednesday,
following the American Petroleum Institute's report of a
surprisingly deep draw in crude oil inventories last week.

The benchmark Hang Seng Index .HSI rose 0.8 percent on
Tuesday tracking a rise in the Shanghai stock market, as banks
including HSBC (0005.HK) recovered from recent losses.

STOCKS TO WATCH-

* China Properties Investment (0736.HK) said late on Tuesday
it would issue up to HK$600 million ($77.42 million) worth of
2-year zero coupon convertible bonds to independent investors,
raising capital to fund possible acquisitions and for working
capital. Trading in the shares will resume on Wednesday. For
statement please click
here

* Weichai Power Co Ltd (2338.HK)(000338.SZ) said late on
Tuesday net profit attributable to shareholders for the first
half of 2009 would range from 1.0-1.25 billion yuan in accordance
to Chinese accounting standards, while operating revenue amounted
to 15.8 billion yuan ($2.31 billion). But no bonus issue and
scrip dividend of shares will be made.

The firm is due to announce its half-yearly results on Aug
29. Trading in the H-shares will resume on Wednesday. For
statement please click
here

* Sichuan Expressway (0107.HK) posted a 34.43 percent
year-on-year rise in first-half profit to 414.14 million yuan,
and total toll income was up 13.78 percent to 918.81 million yuan
as the economy recovered during the period and its performance
last year was hit by snowstorms and an earthquake in Sichuan
province. For statement please click
here

* Maanshan Iron & Steel (0323.HK) posted a 795.4 million yuan
loss in the first half of 2009, against a 2.24 billion yuan
profit a year ago, due to a decline in sales volume and prices of
steel products on declining demand amid the economic crisis. It
said domestic steel product prices were facing uncertainties in
second half despite expected growth in demand. For statement
please click
here

* China Water Affairs Group (0855.HK) said China Constructon
Bank had agreed to provide 2 billion yuan worth of loans and
credit facilities for the business development of the company.
For statement please click
here
----------------------MARKET SNAPSHOT @ 2307 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 989.67 1.01% 9.940
USD/JPY JPY= 94.82 0.13% 0.120
10-YR US TSY YLD US10YT=RR 3.5166 -- 0.000
SPOT GOLD XAU= 937.7 0.04% 0.400
US CRUDE CLc1 70.27 1.56% 1.080
DOW JONES .DJI 9217.94 0.90% 82.60
-------------------------------------------------------------
> Wall Street rebounds; retails, tech in the lead [.N]
> Dollar, yen decline on stock advance, German data [USD/]
> Prices slip as higher stocks curb safety appeal [US/]
> Gold rebounds as dollar weakens, oil recovers [GOL/]
> Oil settles above $69 on Wall Street gains [O/R]

(Reporting by Parvathy Ullatil; Editing by Jonathan Hopfner)