HK stocks seen tracking soft overseas markets

HONG KONG, March 27 (Reuters) - Hong Kong stocks are
expected to fall on Thursday, tracking softer overseas markets
with investors likely to remain cautious over the market's
uncertain outlook and ahead of earnings of several major blue
chips.

"A correction is likely after the recent market strength
with about 300 points on the downside," said Francis Lun, a
general manager at Fulbright Securities. "The market focus will
be on earnings of Cheung Kong and Hutchison today."

Mainland Chinese shares tumbled at the open, with the
Shanghai benchmark index .SSEC dropping nearly 3 percent in
the first few minutes of trade.

Cheung Kong (0001.HK: Quote, Profile, Research, Stock Buzz) is expected to post a net profit of
HK$25.86 billion in 2007, based on an average forecast from 11
analysts polled by Reuters Estimates.

Hutchison (0013.HK: Quote, Profile, Research, Stock Buzz), a ports-to-telecoms conglomerate, is
expected to report a 59 percent rise in 2007 earnings due to a
strong showing at its Canadian Husky Energy unit and asset
sales.

The benchmark Hang Seng Index .HSI ended 0.68 percent
higher at 22,617.01 points on Wednesday. The China Enterprises
Index of Hong Kong-listed mainland companies .HSCE, or H
shares, finished up 1.14 percent at 11,860.22.

Property group Henderson Land (0012.HK: Quote, Profile, Research, Stock Buzz) and its unit
Henderson Investment (0097.HK: Quote, Profile, Research, Stock Buzz) are due to announce their
earnings on Thursday.

STOCKS TO WATCH:

* China CITIC Bank Corp (0998.HK: Quote, Profile, Research, Stock Buzz), the country's
seventh-largest lender, beat analysts' expectations after more
than doubling second-half 2007 earnings, riding a surge in
fee-based income and widening interest margins. CITIC Bank
(601998.SS: Quote, Profile, Research, Stock Buzz) reported a net profit of 5.1 billion yuan ($725.8
million) in the second half, compared with 2.1 billion yuan in
the second half of 2006. [ID:nHKG369859]

* Piped-gas supplier China Gas Holdings Ltd (0384.HK: Quote, Profile, Research, Stock Buzz) plans
to buy more than half of the country's largest distributor of
liquefied petroleum gas for 318 million yuan ($45.3 million),
expanding its reach across the affluent east and shoring up its
mainland gas business. [ID:nHKG368536]

* China Shipping Development (1138.HK: Quote, Profile, Research, Stock Buzz)(600026.SS: Quote, Profile, Research, Stock Buzz) plans to
spend 23 billion yuan ($3.3 billion) to buy 59 vessels over the
next five years, more than doubling its capacity to ride an
anticipated upswell in global trade, its top executive said.
[ID:nHKG352420]

* Second-largest Chinese refiner PetroChina(0857.HK: Quote, Profile, Research, Stock Buzz) has
booked 100,000 tonnes of gasoline for next month, its first
purchase in about eight months, said a trader familiar with the
oil major's trade operations, making the firm's highest monthly
buy ever. [ID:nPEK354101]
* China's top integrated copper producer, Jiangxi Copper Co
Ltd (0358.HK: Quote, Profile, Research, Stock Buzz)(600362.SS: Quote, Profile, Research, Stock Buzz), will raise its stake in an Afghanistan
copper project to 25 percent, from 20 percent, its chairman said
on Wednesday. [ID:nHKG238474]

* Henderson Investment Ltd (0097.HK: Quote, Profile, Research, Stock Buzz), whose shares doubled
on Wednesday, said that a joint venture partner had expressed
interest in buying certain assets from the firm. [ID:nHKG370857]

FACTORS TO WATCH:
* Nikkei down 0.7 pct as exporters fall on yen [.T]
* Bank, economic woes hit Wall St; Oracle dives late [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil hits $106 as US fuel supplies fall [O/R]
* Dollar falls on durables data, Trichet rate comments [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 Southern Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -7.92

China Eastern Air (CEA.N: Quote, Profile, Research, Stock Buzz)(0670.HK: Quote, Profile, Research, Stock Buzz) -7.63

China Telecom (CHA.N: Quote, Profile, Research, Stock Buzz)(0728.HK: Quote, Profile, Research, Stock Buzz) -3.53

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

China Petroleum (SNP.N: Quote, Profile, Research, Stock Buzz)(0386.HK: Quote, Profile, Research, Stock Buzz) -2.55

PetroChina (PTR.N: Quote, Profile, Research, Stock Buzz)(0857.HK: Quote, Profile, Research, Stock Buzz) -2.42
(Reporting by Donny Kwok; Editing by Edmund Klamann)