HK stocks seen lower; property, financials in focus

HONG KONG, April 15 (Reuters) - Hong Kong stocks are expected
to ease on Tuesday, tracking losses on Wall Street, with
investors keeping a close watch on mainland stock markets ahead
of the release of inflation data due on Friday.

"Speculation of an interest rate hike to curb inflation will
continue to haunt the (domestic) market, driving nervous
investors crazy," said Francis Lun, general manager at Fulbright
Securities, adding that some 200 points downside was expected for
the benchmark index.

"Its time for bargain hunting. Some of the stocks have been
serously oversold," Lun added.

The benchmark Hang Seng Index .HSI ended 3.5 percent lower
at 23,811.20 on Monday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE, or H shares, slid 5.2
percent.

Property stocks may gain support following a recent sell-off,
while airline shares may come under pressure after the price of
oil hit a record high.

Financial shares .HSHFI will be in focus after Wachovia
WB.N, the No. 4 U.S. bank, fuelled fears about weak earnings
when it said it would cut its dividend, eliminate jobs and raise
capital of $7 billion after becoming the latest casualty of the
global credit crunch.

STOCKS TO WATCH:

* Credit Suisse downgraded Angang Steel (0347.HK) (000898.SZ)
to underperform from neutral amid a gloomy earnings outlook,
saying a strong rebound in first-quarter earnings was likely to
be the best quarter for 2008.

Angang Steel, which posted a 6.2 percent rise in 2007 profit
to 7.53 billion yuan, said its net profit for the first quarter
of 2008 rose 2.05 percent to 2.44 billion yuan. For details
please see
here

* Hong Kong tycoon Li Ka-shing's Hutchison Whampoa (0013.HK)
will inject an extra 1 billion yuan ($143 million) into a venture
with detergent and toothpaste maker Shanghai Whitecat Group to
help revive the 60-year-old Chinese brand. For detail please see
[ID:nPEK230249]

* Zijin Mining Group (2899.HK) has set the indicative price
range for its Shanghai IPO at a premium to its Hong Kong share
price but in line with market expectations, two sources familiar
with the offer said on Monday. The range was set at 6.88 to 7.13
yuan per share, giving a premium of between 2.7 and 6.4 percent
to Monday's HK$7.46 close of Zijin's Hong Kong-listed H shares.
For details please see [ID:nSHA239074]

* China Eastern Airlines Corp (0670.HK) said its profit
attributable to equity holders returned to the black to 268.9
million yuan in 2007 from a 3.31 billion yuan loss a year ago.
For details please see
here

* China Power International Development (2380.HK) posted a
15.7 percent fall in 2007 profit to 592.44 million yuan as
surging coal prices increased operating costs of the firm's power
plants. For details please see
here

* Beijing Enterprises (0392.HK) said it would team up with
parties, including Datang International, in a coal conversion
project in Kesheketeng Qi in Inner Mongolia with investment
amounting to 18.78 billion yuan. Beijing Enterprises will hold 33
percent of the Keqi Coal-based Gas Project, with total capital
commitment amounting to 6.2 billion yuan. For details please see
here

* Guangzhou Shipyard (0317.HK) said its profit for the first
quarter of 2008 may rise by more than 50 percent from 153.7
million yuan profit in the year-ago period, according to Chinese
accounting standards, thanks to appreciation of the yuan against
the U.S. dollar and improved shipbuilding efficiency during the
period.

FACTORS TO WATCH:
* Japan stocks dip on financials; resources support [.T]
* Wachovia hits banks, cancels oil gains; stocks slip [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Brent crude oil futures jump to record high [O/R]
* Dollar pressured as focus back on data, earnings [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)

China Southern Air (ZNH.N)(1055.HK) -6.47

Aluminum Corp (ACH.N)(2600.HK) -3.89

China Telecom (CHA.N)(0728.HK) -2.83

PetroChina (PTR.N)(0857.HK) -2.67

Yanzhou (YZC.N)(1171.HK) -2.01

CNOOC Ltd (CEO.N)(0883.HK) -1.06

(US$1=HK$7.8)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree)