HK stocks seen down after Q1 results lag forecasts

HONG KONG, April 28 (Reuters) - Hong Kong stocks are expected
to fall on Monday, with disappointing earnings results likely to
encourage profit taking, and as uncertainty looms ahead of a U.S.
Federal Reserve interest-rate decision on Wednesday.

"The market looks like it will reverse course after the sharp
gains last week," said Alex Tang, research director at Core
Pacific Yamaichi International.

"H shares had the major gains last week, but after the
disappointing first-quarter results of Sinopec and China Life,
investors may start to worry. There's also a slew of economic
data expected out of the U.S. this week which could show it is
sliding into a recession."

The Fed will announce its rate decision on Wednesday at 2:15
p.m. EDT (1815 GMT). Earlier that day, the Commerce Department
releases first-quarter gross domestic product data.

On Friday, Hong Kong's Hang Seng Index .HSI slipped 164.0
points to finish at 25,516.78.

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, fell 1.35 percent to end at
14,221.62.

"This week could be critical in terms of deciding the
direction of the market," Tang said.

STOCKS TO WATCH:

* Top Asian oil refiner Sinopec Corp (0386.HK: Quote, Profile, Research, Stock Buzz)(SNP.N: Quote, Profile, Research, Stock Buzz) posted
a 69 percent fall in first-quarter net profit on Sunday, lagging
forecasts as soaring crude oil prices pushed its refining
business into a deep loss.

In a statement on Sinopec said it had made a net profit of
6.06 billion yuan ($865 million) in the three months ended March,
versus a slightly revised 19.6 billion a year
earlier.[ID:nSP330549]

* China's top life insurer China Life Insurance Co
(601628.SS: Quote, Profile, Research, Stock Buzz) (2628.HK: Quote, Profile, Research, Stock Buzz) (LFC.N: Quote, Profile, Research, Stock Buzz) reported a 61 percent fall in
first-quarter profit, according to Chinese accounting standards,
dented by a poor investment performance.

Net profit fell to 3.47 billion yuan ($495.2 million) from
8.89 billion in the year-ago period, the company said.
[ID:nHKG334343]

* Vector Ltd (VCT.NZ: Quote, Profile, Research, Stock Buzz), New Zealand's largest electricity and
gas supplier, agreed to sell an electricity network to Hong
Kong's Cheung Kong Infrastructure (1038.HK: Quote, Profile, Research, Stock Buzz) for NZ$785 million
($609 million), but said it would look to buy more electricity or
gas networks. [ID:nWEL162261]

* China Construction Bank (0939.HK: Quote, Profile, Research, Stock Buzz), the country's
second-biggest lender by assets, posted a net profit of 32.1
billion yuan ($4.6 billion) in the first quarter of 2008, based
on international accounting standards.

The state-controlled bank did not publish figures for the
three months to end-March last year and gave no comparisons in
the statement it issued late on Friday to the Hong Kong stock
exchange.

It made a profit of 12 billion yuan in the fourth quarter of
2007, according to Reuters calculations. [ID:nHKG244879]

* Hunan Nonferrous Metals Corp (2626.HK: Quote, Profile, Research, Stock Buzz) said its profit
attributable to equity holders amounted to 314.9 million yuan
($44.93 million) for 2007, down from 451.4 million yuan in 2006.
For full statement please see
here

* China Railway Construction Corp (1186.HK: Quote, Profile, Research, Stock Buzz) said its profit
attributable to equity holder amounted to 2.3 billion yuan for
2007, up 89.7 percent from 1.21 billion yuan in a year ago
period. For full statement please click
here
FACTORS TO WATCH:
* Nikkei .N225 edges up, exporters boosted by yen fall [.T]
* Rate uncertainty hangs over U.S. stocks [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil strikes new record near $120 on supply fears [O/R]
* Dollar cruises toward best month in 2-½ years [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)

TomoTherapy (TOMO.O: Quote, Profile, Research, Stock Buzz) +3.9

APT Satellite (ATS.N: Quote, Profile, Research, Stock Buzz)(1045.HK: Quote, Profile, Research, Stock Buzz) +2.0

HSBC Holdings (HBC.N: Quote, Profile, Research, Stock Buzz)(0005.HK: Quote, Profile, Research, Stock Buzz) +1.2

PetroChina (PTR.N: Quote, Profile, Research, Stock Buzz)(0857.HK: Quote, Profile, Research, Stock Buzz) -0.15

China South Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) -0.2
(US$1=HK$7.8)
(Reporting by Joseph Chaney; Editing by Anne Marie Roantree)