HK stocks seen down, tracking overseas weakness

HONG KONG, April 22 (Reuters) - Hong Kong stocks are likely
to fall on Tuesday with selling pressure expected on China Mobile
(0941.HK: Quote, Profile, Research, Stock Buzz) and financial counters after Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz)
reported weak quarterly results overnight.

"The market should follow U.S. shares down and China Mobile,
whose ADR dropped 1.5 percent overnight, could drag down the blue
chip index," said Francis Lun, general manager at Fulbright
Securities.

But Credit Suisse raised its target on China Mobile share
price by 12.3 percent on Tuesday to HK$146, citing improving
revenue growth and margins and raising earnings forecasts for
2008 to 2010. The telecom giant late on Monday reported a 37
percent rise in quarterly net profit, slightly shy of forecasts.

Bank of America, the largest U.S. retail bank, reported a
disappointing 77 percent decline in quarterly profit on Monday
which rekindled concerns about the impact of credit crisis has
spilled over to commercial banks. [ID:nN21410537]

But the bank downplayed a report it might soon sell some of
its stake in China Construction Bank (0939.HK: Quote, Profile, Research, Stock Buzz) to bolster
capital. [ID:nN21445097]

The Hang Seng Index could fall about 200 points on Tuesday,
tracking weak overseas markets and after disappointment a rally
fizzled out in mainland shares in Shanghai on Monday.

China's Shanghai Composite Index .SSEC jumped as much as
6.8 percent after regulators placed restrictions on sales of
shares freed up by the expiry of lock-up periods but it came far
off its early high to close just 0.72 percent up.

The benchmark Hang Seng Index .HSI ended up 523.89 points
at an 11-week closing high of 24,721.67 points on Monday and the
China Enterprises Index of Hong Kong-listed companies .HSCE, or
H shares, finished up 2.68 percent.

STOCKS TO WATCH:
* U.S. computer giant IBM (IBM.N: Quote, Profile, Research, Stock Buzz) shed more of its stake in
top Chinese PC maker Lenovo Group Ltd (0992.HK: Quote, Profile, Research, Stock Buzz) on Monday,
offloading $83.6 million worth of stock at a 6 percent discount
to its last trading price, a source familiar with the deal said.

[ID:nHKG283040]

* Zijin Mining Group Co Ltd (2899.HK: Quote, Profile, Research, Stock Buzz), China's No. 2 gold
miner, said it is exploring acquisitions of foreign firms,
especially those involved in gold-related businesses, to expand
its reserves, drive growth in coming years and feed booming
consumption.

The firm now intends to drive a 30 percent expansion in metal
reserves and 20 percent increase in metals production annually
till 2010, Chairman Chen Jinghe told Reuters in an interview.
[ID:nHKG284784]

* China Mobile (0941.HK: Quote, Profile, Research, Stock Buzz) reported a 37 percent rise in
quarterly net profit, slightly shy of forecasts, driven by strong
subscriber growth although average revenue per user slid as the
world's top cellular carrier signs on more low-end subscribers.
[ID:nSHA292879]

* A joint venture between Chinese pipe gas operator China Gas
Holdings (0384.HK: Quote, Profile, Research, Stock Buzz) and Korea's SK Group has bought 50 percent
stake in Jihua City Jinran Piped Gas Co, in Zhejiang province,
for 70 million yuan.

* Mongolia Energy Corp (0276.HK: Quote, Profile, Research, Stock Buzz) said it would sell a real
estate investment in an office tower in Hong Kong for HK$540
million.

* China National Building Material (3323.HK: Quote, Profile, Research, Stock Buzz) said its 52.4
percent owned Beijing New Building Material 000786.SZ was
estimated to post up to 200 percent rise in first quarterly
results in 2008. The unit posted a profit of 35.2 million yuan
the same period a year ago. For details please see
here

FACTORS TO WATCH:
* Nikkei falls 0.8 pct, blue chips sold [.T]
* Dow, S&P dip on bank worries, Texas Instruments off [.N]
* Asian financial shares may fall on bank worries [STXNEWS/AS]
* Oil hits record near $118 on supply worries [O/R]
* US Dollar down on Bank of America results; euro up [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 Corp (SNP.N: Quote, Profile, Research, Stock Buzz)(0387.HK: Quote, Profile, Research, Stock Buzz) +10.26

PetroChina (PTR.N: Quote, Profile, Research, Stock Buzz)(0857.HK: Quote, Profile, Research, Stock Buzz) +7.04

China Mobile (CHL.N: Quote, Profile, Research, Stock Buzz)(0941.HK: Quote, Profile, Research, Stock Buzz) -1.52

SEMIC Manfc Intl (SMI.N: Quote, Profile, Research, Stock Buzz)(0981.HK: Quote, Profile, Research, Stock Buzz) -3.70

China Eastern Air (CEA.N: Quote, Profile, Research, Stock Buzz)(0670.HK: Quote, Profile, Research, Stock Buzz) -3.77

(US$1=HK$7.8)
(Reporting by Alison Leung; Editing by Anne Marie Roantree and
Keiron Henderson)