HK stocks set to fall, airlines under pressure

HONG KONG, May 8 (Reuters) - Hong Kong stocks are set to fall
on Thursday, tracking regional losses, with shares in refineries
and airlines likely to come under further pressure after crude
prices hit another record high.

"Another 100 to 200 points downside is expected, tracking
Wall Street losses, while the focus will be on the mainland
stocks as their performance is having a bigger and bigger impact
on the local market," said Francis Lun, a general manager of
Fulbright Securities.

"Nervous players are likely to lock in recent gains or even
cut losses in a volatile market."

Brokers said rising oil prices would put pressure on airlines
such as China Southern (1055.HK) and Air China (0753.HK), and
refiners such as Sinopec (0386.HK) and PetroChina (0857.HK).

The benchmark Hang Seng Index .HSI closed down 2.48 percent
at 25,610.21 on Wednesday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE, or H shares, fell 3.64
percent to end at 14,118.31.
----------------------MARKET SNAPSHOT @ 0001 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1392.57 -1.81% -25.690
USD/JPY JPY= 104.87 0.13% 0.140
10-YR US TSY YLD US10YT=RR 3.8712 -- 0.000
SPOT GOLD XAU= 865.9 -0.14% -1.250
US CRUDE CLc1 123.79 0.21% 0.260
DOW JONES .DJI 12814.35 -1.59% -206.48
ASIA ADRS .BKAS 163.63 -2.88% -4.86
-------------------------------------------------------------

FACTORS TO WATCH:
* Nikkei down 0.7 pc on banks after Wall St falls [.T]
* Wall St dives on record oil over $123, financials [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil surges to new highs, dealers focus on diesel [O/R]
* Euro hits six-week low against dollar [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

STOCKS TO WATCH:

* Ping An Insurance (2318.HK) (601318.SS) said it had not
made any change to its plan to offer local currency A shares, but
it had no specific timetable for the issue and had not yet
applied for approval. [ID:nSHA146469]

* China Life Insurance Co Ltd (2628.HK) said it would inject
a further 1.85 billion yuan in China Life Pension Co, boosting
its stake in the individual pension and personal accident
insurance unit to 87.4 percent from 55 percent. For details
please see
here

* China Power New Energy Development Co Ltd (0735.HK) said
National Development and Reform Commission of Gansu Province had
given approval for commencement of preliminary works regarding
development of Phase II of the Gansu Power Project in Gansu
Province. For details please see
here

KEY HK ADR MOVERS (by % change)

China Eastern (CEA.N)(0670.HK) -10.66

China Southern Air (ZNH.N)(1055.HK) -8.81

PetroChina (PTR.N)(0857.HK) -7.47

Huaneng Power (HNP.N)(0902.HK) -6.82

Sinopec Shanghai Petro (SHI.N)(0338.HK) -6.76

China Petroleum (SNP.N)(0386.HK) -6.7
(US$1=HK$7.8)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree)