HK stocks seen rising on Beijing move, Wall Steet

HONG KONG, April 21 (Reuters) - Hong Kong stocks are expected
to rise on Monday on back of overseas rallies and after Beijing's
move to the limit flow of non-tradeable shares bolstered
investors' confidence.

"The market is likely to stage a strong rebound today after
Beijing's incentive to help the beleaguered A share market," said
Steven Leung, a sales director at UOB Kay Hian Holdings.

China's securities regulator on Sunday published rules that
will limit the flow of large amounts of shares formerly subject
to lock-up periods directly into the stock market.

For details please read [ID:nPEK282567]

Fears that heavy supply of equities and high inflation will
trigger further marco-economic control measures dragged China's
share market to a 12-month low last week and dampened sentiment
for Hong Kong-listed Chinese stocks.

The blue chip Hang Seng index should test 25,000-point levels
on Monday after Wall Steet's Dow Jones Industrial average rose
1.8 percent on Friday. Latest U.S. earnings, such as those from
Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz), have stirred hope the credit crisis is
nearing an end, traders said.

The benchmark Hang Seng Index .HSI eased 0.3 percent to end
at 24,197.78 on Friday. The China Enterprises Index of Hong
Kong-listed companies .HSCE, or H shares, finished down 1.65
percent.

STOCKS TO WATCH:

* China Railway Group (601390.SS: Quote, Profile, Research, Stock Buzz) (0390.HK: Quote, Profile, Research, Stock Buzz) said on Monday it
had won a 1.84 billion yuan ($263.1 million) contract for a
domestic railway construction project.

In a filing with the Shanghai stock exchange, China Railway
Group said it would build a 70-kilometre railway in the
southwestern province of Yunnan and the value of the contract
represented 1.1 percent of its 2006 revenue.

* Top Chinese oil refiner Sinopec Corp (600028.SS: Quote, Profile, Research, Stock Buzz)(0386.HK: Quote, Profile, Research, Stock Buzz)
(SNP.N: Quote, Profile, Research, Stock Buzz) has estimated that its net profit in the first quarter
fell by more than 50 percent from a year earlier.

In a statement to the Shanghai stock exchange, Sinopec did
not give a figure for first-quarter profit, but it said net
profit in the first quarter of 2007 stood at 19.42 billion yuan
($2.78 billion). For details please read [nPEK281478]

* China Southern Airlines (1055.HK: Quote, Profile, Research, Stock Buzz) said its net profit
attributable to shareholders for the first quarter of 2008 soared
523 percent to 796 million yuan. The results were unaudited and
prepared in accordance to Chinese accounting standards. For
details please see
here
The airline also said on Sunday its subsidiary Xiamen
Airlines had signed a contract with Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) to buy 20
Boeing 737 aircraft. The 20 aeroplanes have a list price of about
$1.5 billion.

China Southern also said that it planned to issue 4 billion
yuan ($572 million) of short-term bills of up to one year, to
raise operating funds. For details please read [ID:nSHA34482]

* Top Chinese electronics chain GOME Electrical Appliances
Holding (0493.HK: Quote, Profile, Research, Stock Buzz) said its controlling shareholder would sell
HK$2.13 billion (US$273.37 million) worth of existing shares to
at least six independent investors.

GOME said in a statement late on Sunday that its controling
shareholder Wong Kwong Yu would sell 125.43 million shares at a
price of not less than HK$17 per share, reducing his stake in the
company to 35.55 percent from 39.48 percent. Shares of GOME ended
at HK$18.28 on Friday.

* PetroChina Co Ltd (0857.HK: Quote, Profile, Research, Stock Buzz) said the Ministry of Finance
will provide subsidy against losses sustained due to refining and
processing of imported crude oil on a monthly basis, ensuring
supply of crude oil and refined products. Refund of the full
amount of value-added tax levied on imported refined products
will be implemented in the second quarter of 2008, the company
said. For details please see
here

FACTORS TO WATCH:
* Nikkei rises 1.21 pct, tracking Wall Street [.T]
* Google and Caterpillar power gains on Wall Street [.N]
* STOCKS NEWS ASIA-Shares seen up on upbeat earnings [STXNEWS/AS]
* Oil hits new record $117 a barrel [O/R]
* Dollar firms on view credit crisis nearing end [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)

SEMIC Manfc Intl (SMI.N: Quote, Profile, Research, Stock Buzz)(0981.HK: Quote, Profile, Research, Stock Buzz) +6.18

CNOOC Ltd (CEO.N: Quote, Profile, Research, Stock Buzz)(0883.HK: Quote, Profile, Research, Stock Buzz) +4.67

China Mobile (CHL.N: Quote, Profile, Research, Stock Buzz)(0941.HK: Quote, Profile, Research, Stock Buzz) +4.00

Sinopec Corp (SNP.N: Quote, Profile, Research, Stock Buzz)(0387.HK: Quote, Profile, Research, Stock Buzz) +2.74

China Southern Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -4.64

China Eastern Air (CEA.N: Quote, Profile, Research, Stock Buzz)(0670.HK: Quote, Profile, Research, Stock Buzz) -4.65

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