HK stocks seen rebounding after steep declines

HONG KONG, March 14 (Reuters) - Hong Kong stocks should
bounce back on Friday after suffering their worst day since early
February, with Asian refiner Sinopec Corp (0386.HK: Quote, Profile, Research, Stock Buzz) and property
shares likely to find a toehold after getting whacked in the last
session.

Sinopec said on Thursday that reports in the mainland media
that it might suffer a loss in the first and second quarters were
"factually incorrect and misleading". Sinopec said it would
release its first-quarter results in the second half of April.

Conita Hung, head of equity markets at Delta Asia Financial,
said shares in Hong Kong property developers should post
especially sharp recoveries since they have been oversold.

The rest of the market may see limited upside, she said.

"An upside up to about 22,800 is expected, with concern over
the Japanese yen preventing investors from taking aggressive
positions," said Conita Hung, head of equity research from Delta
Asia Financial.

The benchmark Hang Seng index .HSI fell nearly 5 percent to
22,301.64 on Thursday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE shed 6.1 percent to
12,094.06.

STOCKS TO WATCH:

* Clear Media Ltd (0100.HK: Quote, Profile, Research, Stock Buzz) said it would pay about 1 billion
yuan for up to about 15.52 percent of the enlarged share capital
of bus body advertising service provider Beijing Bashi Co Ltd
(600386.SS: Quote, Profile, Research, Stock Buzz).

* Athletic shoemaker Yue Yuen Industial (0551.HK: Quote, Profile, Research, Stock Buzz) said it may
issue or repurchase up to 78.50 million shares under the terms of
derivative contracts which were entered into to remove most of
the accounting impact on its reported earnings.

The sport shoe maker said the issuances or repurchases would
not result in a dilution of shareholders' interests and the deal
was intended to allow its reported earnings to reflect more
accurately the earnings performance of its operations. For
details please see
here

* China Shipping Container Lines Co Ltd (2866.HK: Quote, Profile, Research, Stock Buzz) said it had
entered into preliminary talks on a possible acquisition from its
controlling shareholder, China Shipping (Group) Co, of the entire
equity interests in China Shipping Terminal Development Co Ltd.

* Skyworth Digital Holdings Ltd (0751.HK: Quote, Profile, Research, Stock Buzz) said it had
recorded a 24.3 percent year-on-year drop in its total sales
volume of television sets in February.
here

FACTORS TO WATCH:
* Nikkei .N225 rises 0.4 pct as yen eases slightly [.T]
* U.S. stocks end higher as S&P view eases credit fears [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil surges to record $111 as dollar slides [O/R]
* Dollar edges above 12-year low vs yen [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 East Air (CEA.N: Quote, Profile, Research, Stock Buzz)(0670.HK: Quote, Profile, Research, Stock Buzz) +2.9

Semiconductor Mfng (SMI.N: Quote, Profile, Research, Stock Buzz)(0981.HK: Quote, Profile, Research, Stock Buzz) +2.8

Hutchison Telecom (HTX.N: Quote, Profile, Research, Stock Buzz)(2332.HK: Quote, Profile, Research, Stock Buzz) +2.5

Sinopec (SNP.N: Quote, Profile, Research, Stock Buzz)(0386.HK: Quote, Profile, Research, Stock Buzz) -4.1

China South Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -5.9
(US$1=HK$7.8)
(Reporting by Rita Chang; editing by Anne Marie Roantree)

rita.chang@reuters.com; Reuters Messaging:
rita.chang.reuters.com@reuters.net; +852-2843-6370))

ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........[STXNEWS/AS] Japan.......[.T] S.Korea...[.KS]
S.E. Asia.......[.SO] Hong Kong...[.HK] Taiwan....[.TW]
Australia/NZ....[.AX] India.......[.BO] China.....[.SS]

OTHER MARKETS:
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Eurostocks Week Ahead [.EU/O]

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