HK shares seen higher on China measures
HONG KONG, Dec 4 (Reuters) - Hong Kong shares are set to rise on Thursday, with investors likely to focus on financial stocks, after China said it planned to stabilise its stock market and ensure liquidity in the banking system.
China's cabinet has approved measures aimed at keeping the stock market steady, boosting bond issuance and increasing the supply of credit. [ID:nPEK83991]
Investors may also be encouraged by gains on Wall Street overnight, and early rises in Tokyo and Seoul on Thursday. "Hong Kong stocks will edge up a bit today, probably rising by 100 points," said Francis Lun, general manager at Fulbright Securities. "China is stepping up its efforts to boost its financial markets and that will be positive for Hong Kong."
The benchmark Hang Seng Index .HSI closed up 1.4 percent to 13,588.66 on Wednesday.
Investors, however, may remain cautious ahead of the release of November jobless data in the United States on Friday.
STOCKS TO WATCH:
* Cheung Kong (Holdings) (0001.HK) said late on Wednesday it would sell a 15 percent stake in a property development project in Tsuen Wan to Nan Fung Development Ltd in a deal valued at about HK$435.52 million. For statement please see here
* i-Cable Communications (1097.HK) said on Wednesday its controlling shareholder had decided not to proceed with a possible privatisation proposal. It gave no further details. Trading in the shares will resume on Thursday.
* Shaw Brothers 0080.HK on Wednesday posted a profit attributable to equity holders of HK$115.5 million for the six months ended in September, down from HK$119.5 million a year earlier. It said contributions from its broadcasting unit, Television Broadcasts Ltd (0511.HK), only increased by 1 percent with cost of sales and overhead expenses rising 14 percent during the period. For statement please see here
* China High Speed Transmission Equipment (0658.HK) said it had repurchased and cancelled an aggregate 427.40 million yuan in the face value of bonds due 2011 which it bought back in the over-the-counter market. For statement please see here
* HKMA chief Joseph Yam said Hong Kong and mainland authorities would study ways to allow manufacturers to use property they own in the city as collateral to secure loans from banks across the border and would work together to facilitate cross-border borrowing to ease the credit crunch, the South China Morning Post said.
* Bank of America has finished lifting its stake in China Construction Bank (0939.HK) to 19.13 percent.
* Frances Yung, daughter of CITIC Pacific's (0267.HK) chairman Larry Yung, was aware of at least one toxic forex deal that cost the company billions, according to a document revealed on Wednesday, the Standard newspaper reported.
----------------------MARKET SNAPSHOT @ 2257 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 870.74 2.58% 21.930 USD/JPY JPY= 93.27 -0.03% -0.030 10-YR US TSY YLD US10YT=RR 2.6551 -- -0.046 SPOT GOLD XAU= 772.9 0.04% 0.300 US CRUDE CLc1 46.79 0.00% -0.170 DOW JONES .DJI 8591.69 2.05% 172.60 ASIA ADRS .BKAS 84.99 0.95% 0.80 -------------------------------------------------------------
MARKET SUMMARY *Wall St jumps on Coke and other defensive plays [ID:nN03489984] *Oil dips as demand crumbles, OPEC eyes deeper cuts [ID:nSP68559] *Dollar gains; risk aversion waxes and wanes [ID:nN03331356] *Treasuries drop in pullback from recent rally [ID:nN03435169]
(Reporting by Jun Ebias and Donny Kwok; Editing by Anne Marie Roantree)
