Telecoms, oil stocks fuel rally in HK shares

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

By Judy Hua

HONG KONG, Dec 24 (Reuters) - Hong Kong stocks rallied on
Monday, tracking Wall Street gains as investors bid up shares
across the board, with telecoms and oil stocks leading the
market.

Local property developers maintained their gains as the
city's inflation is expected to boost demand for real estate.

"We expect some more upside this week, especially since there
will not be any deterioration in the U.S. subprime situation
towards the year-end and there shouldn't be any unexpected credit
tightness from China. So news-wise it's neutral to positive,"
said Steven Leung, sales director at UOB Kay Hian Holdings.

"There should be some more window-dressing activity in the
shares. It is very likely to get to the range of 28,500 to 29,000
this week."

The benchmark Hang Seng Index .HSI rose 1.82 percent to
28,128.80, on mainboard turnover of HK$51.87 billion (US$6.65
billion).

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, rose 2.76 percent to 16,422.61.

Top mobile carrier China Mobile (0941.HK), the most active
stock of the day, rose nearly 3 percent to HK$141.80 while
smaller rival China Unicom (0762.HK) jumped as much as 7 percent
before ending up 3.6 percent at HK$17.36, after Chinese media
reports that the country's top economic planning agency had
proposed splitting China Unicom while keeping China Mobile
intact, as part of moves to create a fairer market landscape.

Asia's top oil and gas producer PetroChina (0857.HK) rose
2.17 percent to HK$14.14, while offshore oil and gas producer
CNOOC Ltd (0883.HK) advanced 3.5 percent to HK$13.04 as oil
prices jumped more than $2.

China Oilfield (2883.HK) jumped 6.67 percent to HK$17.92
after it said it had clinched a deal worth around $100 million
after tax to supply drilling rigs to a Libyan company as part of
a push into the Middle East and Africa.

Among property shares, Henderson Land (0012.HK) raced up 4.4
percent to HK$73.65 and Hang Lung Properties (0101.HK) rose 3.4
percent to HK$34.75

Zijin Mining (2899.HK) soared more than 15 percent to
HK$11.90 as China's No.2 gold producer unveiled an issue of as
many as 1.5 billion shares in Shanghai that could raise about
US$1.8 billion.

China National Materials Company Ltd (Sinoma) (1893.HK), the
world's largest cement engineering services provider, which
debuted last week, jumped more than 16 percent to HK$8.69.

China Railway (0390.HK), the world's third-largest
construction contractor, jumped as much as 9.7 percent before
closing up 7.2 percent at HK$10.26.
(US$1=HK$7.8)
(Reporting by Judy Hua; Editing by Edmund Klamann)