Hong Kong stocks set to track overseas losses

HONG KONG, Feb 11 (Reuters) - Hong Kong stocks are expected
to ease on Monday, catching up with losses in overseas markets
during the Lunar New Year holiday, as the index marks its first
trading day in the year of the Rat.

"Some 200 points on the downside are expected following
softer overseas markets," said Conita Hung, head of equity
research of Delta Asia Financial Group.

"However, the market may rebound on bargain hunting as it was
seen oversold last week. No bad news during the holiday may
encourage buying."

The benchmark Hang Seng Index .HSI fell 5.4 percent in a
half-day trading session on Wednesday, the biggest single day
percentage fall in just over 2 weeks, to finish at 23,469.46.

Hung said sectors such as property and mainland telecoms were
likely to be in demand following their recent corrections.

The China Enterprises index of H-shares .HSCE, or Hong
Kong-listed shares in mainland companies, plunged 6.93 percent to
13,067.11 on Wednesday.

STOCKS TO WATCH:

* The chairman of mining company Rio Tinto Ltd/Plc
(RIO.AX: Quote, Profile, Research, Stock Buzz)(RIO.L: Quote, Profile, Research, Stock Buzz) wrote to shareholders on Sunday, urging them to
take no action on a bid for the company by rival miner BHP
Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz) (BLT.L: Quote, Profile, Research, Stock Buzz). [ID:nSYD19845]

State-owned Chinalco, parent of Chalco (2600.HK: Quote, Profile, Research, Stock Buzz), and its
partner, U.S. aluminium giant Alcoa Inc (AA.N: Quote, Profile, Research, Stock Buzz), which
gate-crashed BHP's plan for a takeover of Rio with a $14 billion
purchase of a 9 percent stake in the company, were in no rush to
make their next move. {ID:nHKG213891]

* China National Building Material Co Ltd (3323.HK: Quote, Profile, Research, Stock Buzz) said it
would seek shareholders' approval in a meeting on March 25 on its
plan to issue up to 300 million H-shares at a price to be
determined. For details please see
here

* Bank of East Asia (0023.HK: Quote, Profile, Research, Stock Buzz) said it would fully support
David Li in continuing as the chairman and chief executive of the
bank after Li, without admitting or denying liability, agreed to
pay a civil penalty of US$8.1 million in relation to trading in
shares in Dow Jones. For details please see
here

FACTORS TO WATCH:
* Japanese markets closed on Monday [.T]
* US stocks-S&P, Dow decline on credit worry; Nasdaq up [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil posts biggest gauin in two months [O/R]
* Dollar steady as G7 notes economy risks, skips FX [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

KEY HK ADR MOVERS (by % change)

Sinopec Sha Pet (SHI.N: Quote, Profile, Research, Stock Buzz)(0338.HK: Quote, Profile, Research, Stock Buzz) -2.24

China Unicom (CHU.N: Quote, Profile, Research, Stock Buzz)(0762.HK: Quote, Profile, Research, Stock Buzz) -1.74

Huaneng Power (HNP.N: Quote, Profile, Research, Stock Buzz)(0902.HK: Quote, Profile, Research, Stock Buzz) -1.62

China Telecom (CHA.N: Quote, Profile, Research, Stock Buzz)(0728.HK: Quote, Profile, Research, Stock Buzz) -1.35

China Southern (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -1.28

Chalco (ACH.N: Quote, Profile, Research, Stock Buzz)(2600.HK: Quote, Profile, Research, Stock Buzz) -1.18
($1=HK$7.8)
(Reporting by Donny Kwok; editing by Anne Marie Roantree)