PRESS DIGEST - Hong Kong - Dec 4

HONG KONG, Dec 4 (Reuters) - These are some of the leading stories in Hong Kong newspapers on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

HONG KONG ECONOMIC TIMES

- A union representing Cathay Pacific (0293.HK) flight attendants has threatened to carry out a protest march and take further industrial action over the busy Christmas period following a move by the carrier to reduce its subsidy for employee medical insurance policies.

APPLE DAILY

- Lehman Brothers, the third largest shareholder in HSBC Holdings (0005.HK), has offloaded shares in the British-based bank, according to a disclosure. Through various transactions in November, Lehman cut its holding to less than 3 percent from 3.48 percent.

MING PAO DAILY NEWS

- Hong Kong airport and neighbouring airports in Shenzhen and Zhuhai could form an aviation hub group if they build better links between each other, Hong Kong Airport Authority Chairman Victor Fung said. He added that Hong Kong could then consider whether to build the third runway.

SING TAO DAILY

- Hong Kong Financial Secretary John Tsang intends to offer landlords an exemption from government rates for part of the next financial year when he announces the Government Budget in February.

SOUTH CHINA MORNING POST

- Mainland-based aluminium foil maker Xiashun Holdings has postponed a HK$2.13 billion (US$273.5 million) share sale, as the environment for Hong Kong initial public offerings has become unfavourable in recent weeks.

THE STANDARD

- To help local investors make prompt investment decisions, the Hong Kong stock exchange will no longer suspend shares in HSBC Holdings (0005.HK) when it is due to publish price-sensitive information about itself during trading hours.

- Hong Kong's currency link to the U.S. dollar remains suitable for the city even when the U.S. dollar is declining sharply, said John Greenwood, the architect of the 24-year-old peg.

WEN WEI PO

- JP Morgan is bullish on Hong Kong stocks, saying in a report that the Hang Seng Index will rise 20 percent next year.

TA KUNG PAO

- The Hong Kong government expects inflation in the city to rise above three percent in the fourth quarter of this year. The administration has also vowed to speed up infrastructure projects to create more jobs.

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