Coal shares boost HK's China plays, Sinoma surges

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

By Rita Chang

HONG KONG, Dec 20 (Reuters) - Hong Kong-listed China plays
rose 0.5 percent on Thursday as coal shares climbed further on
news that mainland power producers would pay more for thermal
coal next year.

Investors also bid up new issue China National Materials
Company Ltd (Sinoma) (1893.HK) as a proxy for the country's
sizzling economic growth. In contrast, two other debuts met with
a cooler reception.

In a choppy session, blue chips were flat at midday,
mirroring the shares of heavyweights HSBC Holdings (0005.HK) and
China Mobile (0941.HK).

Sinoma, the world's largest cement engineering services
provider, was the morning's most traded stock, rising to HK$6.18
for a gain of 37.3 percent from its offering price of HK$4.50.

"On a long-term basis, anything tied to construction is bound
to do well, with China's economy growing and demand for more
roads and highrises," said Andrew To, sales director at Tai Fook
Securities.

The market seesawed for much of the morning but traded in a
narrow range with the benchmark Hang Seng Index .HSI at
27,019.63 by midsession.

The China Enterprises Index of mainland companies listed in
Hong Kong .HSCE performed better, boosted by the outperforming
coal sector. The index was up at 15,718.26.

Mainboard turnover was HK$43.0 billion (US$5.5 billion),
compared with Wednesday morning's HK$44.4 billion.

"The mood is quite cautious, but the selling pressure has
subsided and turnover is contracting substantially. Sentiment has
stabilised," To said.

Another new issue, Chinese handset component maker BYD
Electronic (0285.HK), finished the morning at HK$10.80, for a 0.5
percent gain from its HK$10.75 IPO price.

Vietnam Manufacturing & Export Processing (Holdings) Ltd
(0422.HK), one of the country's leading makers of scooters and
motorbikes, ended the morning at HK$3.37 for a loss of 10 percent
from its HK$3.75 IPO price.

Among coal plays, China Shenhua Energy (1088.HK), the
country's top coal producer, jumped 2.2 percent to HK$46. China
Coal (1898.HK) climbed 2 percent to HK$23.15.

China COSCO (1919.HK) raced up 3.6 percent to HK$22.95 after
the container shipper said it was revising up its forecast for
2007 earnings by at least 50 percent to reflect
better-than-expected market conditions.

The revised forecast includes contributions from its recently
completed dry bulk acquisition.

China Railway (0390.HK) surged 7.6 percent to HK$8.80.
(US$1=HK$7.8)
(Editing by Edmund Klamann)