HK stocks seen lower after rising 4 straight days

HONG KONG, Feb 18 (Reuters) - Hong Kong stocks were expected
to decline on Monday, with investors likely to lock in profits
after an index of U.S. consumer sentiment registered a 16-year
low.

"There's room for profit-taking," said Francis Lun, general
manager at Fulbright Securities. "We'll probably fall 300
points."

A Reuters/University of Michigan index of consumer sentiment
dropped in February to a level associated with past recessions.
Also, factory activity in New York state suffered its biggest
drop on record [ID:nN15565559].

Investors may also focus on Sinopec Corp (0386.HK: Quote, Profile, Research, Stock Buzz) after
Asia's top oil refiner said on Sunday it would issue up to 30
billion yuan ($4.18 billion) worth of bonds with warrants on Feb
20 [ID:nHKG264689].

The benchmark Hang Seng index .HSI rose 0.5 percent to
24,148.43 on Thursday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE gained 2.2 percent to
13,843.52.

STOCKS TO WATCH:

* Sinopec Corp (0386.HK: Quote, Profile, Research, Stock Buzz) has taken over 64 gasoline stations
in central China that were formerly run by an oil tycoon, the
China Petrochemical News reported on Friday [ID:nPEK343856].

* Chinese property developer Country Garden Holdings Co Ltd
(2007.HK: Quote, Profile, Research, Stock Buzz) is due to resume trade on Monday after saying it plans
to issue 3.595 billion yuan ($500.8 million) worth of 2.5 percent
convertible bonds due 2013, to raise capital to repay debt and
fund new and existing projects [ID:nHKG332297].

* Alibaba Group, the Chinese Internet company part-owned by
Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz) and parent of Alibaba.com (1688.HK: Quote, Profile, Research, Stock Buzz), has hired
advisers to evaluate issues related to a possible purchase of its
U.S. partner by Microsoft Corp after the Chinese government said
it would scrutinize the deal, the Wall Street Journal said on
Friday.
[ID:nN15592723].

* Merrill Lynch cut its rating on Tsingtao Brewery (0168.HK: Quote, Profile, Research, Stock Buzz)
to "sell" from "buy" due to the company's unsettled tax
situation, which could have a "worse-than-expected" impact on
2007 results [ID:nHKG346577].

FACTORS TO WATCH:
* Nikkei .N225 opens flat, Toshiba jumps [.T]
* U.S. stocks-Dow, Nasdaq slip on consumer spending worry [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil steady, US economic concerns weigh [O/R]
* Dollar sees worst week against euro this year [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 Telecom (CHA.N: Quote, Profile, Research, Stock Buzz)(0728.HK: Quote, Profile, Research, Stock Buzz) +6.7

Aluminum Corp (ACH.N: Quote, Profile, Research, Stock Buzz)(2600.HK: Quote, Profile, Research, Stock Buzz) +5.5

CNOOC Ltd (CEO.N: Quote, Profile, Research, Stock Buzz)(0883.HK: Quote, Profile, Research, Stock Buzz) +5.1

HSBC Holdings (HBC.N: Quote, Profile, Research, Stock Buzz)(0005.HK: Quote, Profile, Research, Stock Buzz) -1.1

TOM Online (TOMO.O: Quote, Profile, Research, Stock Buzz)8282.HK -3.6
(US$1=HK$7.8)