HK stocks seen tracking weaker overseas markets

HONG KONG, March 28 (Reuters) - Hong Kong stocks are expected
to fall on Friday, tracking weaker overseas markets, but strong
earnings from some major blue chips could limit any decline in
the main index.

"Some 200 to 300 points downside is expected, but the
underlying tone of the Hong Kong economy remains strong and that
is seen giving support to the market," said Andrew To, a sales
director from Tai Fook Securities.

"Cautious investors are likely to closely monitor the Chinese
markets for hints of direction," To said, adding a possible
rebound in Chinese stocks after recent weakness may give Hong
Kong stocks a boost.

Mainland Chinese shares fell slightly at the open, with the
Shanghai benchmark index .SSEC sliding about 0.41 percent in
the first few minutes of trade.

The benchmark Hang Seng Index .HSI ended 0.21 percent
higher at 22,664.22 points on Thursday. The China Enterprises
Index of Hong Kong-listed mainland companies .HSCE, or H
shares, finished down 0.26 percent at 11,828.84.

STOCKS TO WATCH:

* Hutchison Whampoa (0013.HK: Quote, Profile, Research, Stock Buzz), billionaire Li Ka-shing's
ports-to-telecoms flagship, posted a 50 percent rise in
second-half earnings, lifted by its Canadian Husky Energy
(HSE.TO: Quote, Profile, Research, Stock Buzz) unit and by trading income, but it lagged forecasts
after higher-than-expected telecoms writedowns. [ID:nHKG368707]

* Top Chinese offshore oil and gas producer CNOOC Ltd
(0883.HK: Quote, Profile, Research, Stock Buzz) posted a disappointing 14 percent rise in second-half
earnings despite climbing oil prices, after paying out nearly $1
billion in oil taxes in 2007. [ID:nHKG664]

* China Unicom Ltd (0762.HK: Quote, Profile, Research, Stock Buzz), the smaller of the country's
two mobile telecoms operators, posted its strongest
fourth-quarter profit in at least three years as more users
switched to wireless from traditional phones. [ID:nSHA16312]

* PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz) will start pumping gas from Dina
field, one of the country's largest, in the remote northwest in
mid-2009 to supply the gas-thirsty east coast, an industry Web
site said. That would be a few years behind an earlier plan.
[ID:nPEK30883]

* Industrial and Commercial Bank of China
(601398.SS: Quote, Profile, Research, Stock Buzz)(1398.HK: Quote, Profile, Research, Stock Buzz) has priced its 8.011 billion yuan ($1.1
billion) issue of asset-backed securities, the debt's trustee
said on Thursday. [ID:nSHA24621]

* Citic International Financial Holdings (CIFH) (0183.HK: Quote, Profile, Research, Stock Buzz), a
small Hong Kong lender, said on Thursday it wrote down HK$1.31
billion ($168 million) for 2007 to reflect the fall in value on
its holdings in structured investment vehicles (SIVs).
[ID:nHKG144639]

FACTORS TO WATCH:
* Japan's Nikkei dips, tracking losses on Wall St [.T]
* Wall St dives on tech, bank outlooks: Bear hit late [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil climbs over $107 on Iraq pipeline outage [O/R]
* Tepid Fed action, short-covering boost dollar [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) +5.85

Huaneng Power (HNP.N: Quote, Profile, Research, Stock Buzz)(0902.HK: Quote, Profile, Research, Stock Buzz) +3.21

Yanzhou (YZC.N: Quote, Profile, Research, Stock Buzz)(1171.HK: Quote, Profile, Research, Stock Buzz) +3.2

China Petroleum (SNP.N: Quote, Profile, Research, Stock Buzz)(0386.HK: Quote, Profile, Research, Stock Buzz) -2.9

China Southern Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -3.27

China Eastern Air (CEA.N: Quote, Profile, Research, Stock Buzz)(0670.HK: Quote, Profile, Research, Stock Buzz) -3.51
(Reporting by Donny Kwok; editing by Ken Wills)