HK stocks seen retreating, HSBC eyed after results

HONG KONG (Reuters) - Hong Kong stocks may open lower on Thursday, a day after posting their best advance in nearly three months, but HSBC (0005.HK: Quote, Profile, Research, Stock Buzz) could hold firm after saying revenue growth across the group had offset a jump in its charge for bad debts in the United States.

Europe's biggest bank, HSBC Holdings Plc, also reassured investors on Wednesday that it did not have further exposure to big debts in mortgage-related financial products .

"The provisions were larger than expected, but the overall performance was in line with expectations, so I think (HSBC shares) will maintain its share price," said Patrick Yiu, associate director at CASH Asset Management.

Yiu said he expected the market to trade between 28,600 to 29,400 points.

"Whether Hong Kong can maintain its uptrend will also depend on the mainland stock market," he added.

Mainland-traded stocks .CSI300 rallied strongly on Wednesday, in line with a sharp recovery in global equities.

The benchmark Hang Seng index .HSI rose nearly 5 percent to 29,166.01 on Wednesday. The China Enterprises Index of Hong Kong-listed mainland companies .HSCE gained 6.8 percent to 17,837.13.

STOCKS TO WATCH:

* China National Offshore Oil Corp, the parent of CNOOC Ltd (0883.HK: Quote, Profile, Research, Stock Buzz), has been offered Royal Dutch Shell Group's (RDSa.L: Quote, Profile, Research, Stock Buzz) oil business in Australia's North West Shelf oil and gas project, the Australian newspaper reported on Thursday ID:nSYD234089.