PRESS DIGEST - Hong Kong - Aug 4

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

HONG KONG ECONOMIC TIMES

-- HSBC Holdings (0005.HK) could see the first decline in its interim results since 2002 as its provisioning on devaluation of certain assets is predicted to reach as much as US$11.22 billion.

-- The secondary property market has recorded more transactions as homeowners lower their asking prices and allow negotiations. Midland Realty reported stronger figures with signs of bargain-hunting in the market.

APPLE DAILY

-- UBS has predicted Hong Kong flagship airline Cathay Pacific Airways (0293.HK), which has issued a profit warning, will report an interim net loss of HK$400 million ($51.26 million).

-- Attendance at the annual animation, comics and game fair has surpassed 400,000 after three days, or 14 percent higher than the first three days last year.

MING PAO DAILY NEWS

-- Rail company MTR Corp. (0066.HK) is set to report its interim results on Tuesday. Net profit is expected to drop, with predictions of a decline of as much as 40 percent year-on-year. MTR's merger with KCRC earlier would generate income that could offset a drop in property earnings.

SOUTH CHINA MORNING POST

-- Guangzhou Automotive Industry Corp may delist red-chip unit Denway Motors (0203.HK) from the Hong Kong stock market through a share buyback after it concludes its long-awaited dual listing by early November, according to sources.

THE STANDARD

-- Some analysts expect changes to the Hang Seng Index .HSI and Hang Seng China Enterprises Index .HSCE after compiler HSI Services meets on Friday. But investors who want to profit from index shuffling will have to be smart about their timing.

-- HSBC and US-based private equity firm Lone Star have failed so far to agree on an extended deadline for the sale of Korea Exchange Bank, as HSBC hopes to lower the acquisition price, according to South Korean media reports.

HONG KONG ECONOMIC JOURNAL

-- The market is waiting for the results announcement of HSBC Holdings, which will significantly affect stock market performance this week.

SING PAO

-- The Hong Kong Observatory said in its weather forecast that there were chances of rain and cloudy conditions and even tropical cyclones during the Olympic equestrian events here starting Saturday. Organisers said they have contingency plans for bad weather.

TA KUNG PAO

-- Financial Secretary John Tsang says Hong Kong has no need to alter its currency peg policies.

For Chinese newspapers, see...............[PRESS/CN]

For Taiwan newspapers, see............[PRESS/TW] ($1=7.803 Hong Kong Dollar)

(Editing by Jonathan Hopfner)