HK stocks seen rise on revised Bear offer

HONG KONG, March 25 (Reuters) - Hong Kong stocks are expected
to bounce back on Tuesday, with banking shares such as HSBC
(0005.HK: Quote, Profile, Research, Stock Buzz) likely to rise after JP Morgan's raised offer for Bear
Stearns BSC.N improved investor confidence on Wall Street.

"The strong performance will be on the banking stocks, such
as HSBC," said Conita Hung, head of equity markets at Delta Asia
Financial Group.

"Another focus will be on the Taiwan-related stocks because
the result of the election is quite positive to Taiwan, providing
some buying interests," Hung said.

Overseas investment by China's biggest life insurer, China
Life (2628.HK: Quote, Profile, Research, Stock Buzz), will give some support to its share price, she
said, adding that the benchmark Hang Seng Index .HSI would be
capped at the 22,000 resistance level.

The Hang Seng index fell 3.5 percent to 21,108.22 on
Thursday, the last trading day before the Easter holiday break.
The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, finished down 5.3 percent at
10,836.20.

STOCKS TO WATCH:

* China Life Insurance Co (601628.SS: Quote, Profile, Research, Stock Buzz) (2628.HK: Quote, Profile, Research, Stock Buzz), the
country's biggest life insurer, said on Monday it had invested
$300 million in Visa Inc's (V.N: Quote, Profile, Research, Stock Buzz) initial public offering in its
maiden overseas investment.

* Semiconductor Manufacturing International Corp (0981.HK: Quote, Profile, Research, Stock Buzz)
said it was in advanced negotiations with a strategic investor to
buy shares or convertible instruments of the company but that no
agreement had yet been reached.

* BYD Co Ltd (1211.HK: Quote, Profile, Research, Stock Buzz) posted a 44.2 percent rise in 2007
profit to 1.612 billion yuan, while turnover jumped 63.9 percent
to 21.211 billion yuan.
here

* Industrial & Commercial Bank of China (1398.HK: Quote, Profile, Research, Stock Buzz)
(601398.SS: Quote, Profile, Research, Stock Buzz), the world's biggest bank by market value, is
forecast to post a 63 percent rise in its 2007 net profit to 80.5
billion yuan.

* Bank of China's (3988.HK: Quote, Profile, Research, Stock Buzz) (601988.SS: Quote, Profile, Research, Stock Buzz) is expected to post a
25 percent increase in 2007 net profit to 53.5 billion yuan ($7.6
billion) because of its exposure to subprime holdings, slower fee
income growth and higher loan impairment losses.

FACTORS TO WATCH:
* Nikkei .N225 up over 1 pct as yen softens vs dl [.T]
* Wall St soars on revised Bear offer, home sales [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil slides further on dollar, demand worries [O/R]
* Home sales, Bear Stearn news lift 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)

APT Satellite (ATS.N: Quote, Profile, Research, Stock Buzz)(1045.HK: Quote, Profile, Research, Stock Buzz) +4.4

China East Air (CEA.N: Quote, Profile, Research, Stock Buzz)(0670.HK: Quote, Profile, Research, Stock Buzz) +2.9

China Mobile (HK) (CHL.N: Quote, Profile, Research, Stock Buzz)(0941.HK: Quote, Profile, Research, Stock Buzz) +2.7

Hutchison Telecom (HTX.N: Quote, Profile, Research, Stock Buzz)(2332.HK: Quote, Profile, Research, Stock Buzz) +2.6

Yanzhou Coal (YZC.N: Quote, Profile, Research, Stock Buzz)(1171.HK: Quote, Profile, Research, Stock Buzz) +1.9
(Reporting by Judy Hua; editing by Ken Wills)