HK stocks seen lower, telecoms in focus

HONG KONG, Dec 28 - (Reuters) - Hong Kong stocks are expected to fall on Friday, tracking losses on Wall Street, but telecoms shares are likely to remain in focus on speculation that an industry reshuffle may start next year.

Asian markets were volatile on Friday morning as investors feared the assassination of Benazir Bhutto in Pakistan may spark global unrest, a factor likely to weigh further on Hong Kong stocks.

"Since the overseas markets did not perform so well due to the uncertainty in Pakistan, the local market may open lower today," said Patrick Yiu, associate director at CASH Asset Management.

"But since the Hong Kong market already fell yesterday and the ADRs did not perform so badly, I expect the supporting level will be around 27,400 and the resistance at 28,000."

The benchmark Hang Seng index .HSI fell 1.02 percent to 27,842.93 on Thursday.

State media quoted Ministry of Information Industry officials as saying the long-awaited restructuring of the Chinese telecoms industry would start next year, in a move that may see the break-up of one telephone giant and more consumer choice.

The government also signaled it was ready to launch its high-speed 3G wireless network next year, based on home-grown technology.

STOCKS TO WATCH:

* A consortium led by Ping An Insurance (Group) Co (2318.HK), China's No. 2 insurer, will invest nearly $2.2 billion in an express railway link between Beijing and Shanghai, marking the first major infrastructure investment by a group of Chinese insurers. ID:nHKG238778

* China Construction Bank (0939.HK) and Bank of America (BAC.N) have set up a $615 million financial leasing venture, among the first major Sino-foreign ventures to start up formally in the nascent sector.

* Hong Kong and mainland China have agreed to relax a swathe of restrictions on aviation services, letting carriers such as Air China (0753.HK) and Cathay Pacific (0293.HK) expand flights and cargo services.

* Spain's largest savings bank La Caixa said it had bought about 4 percent of Hong Kong-based Bank of East Asia (0023.HK) in a deal worth around 265 million euros, becoming the biggest public shareholder.

FACTORS TO WATCH: * Nikkei .N225 opens down on firmer yen, Pakistan unrest .T * U.S. stocks sinks with Bhutto killing, financials' view .N * STOCKS NEWS ASIA-Market factors, main events <STXNEWS/ASIA> * Oil rises on Bhutto killing, US inventory drop <O/R> * Dollar slips on soft data; Bhutto death unsettles <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)

Semiconductor Mfng (SMI.N)(0981.HK) +5.97

APT Satellite ATS.N(1045.HK) +4.62