HK shares seen lower, property and finance in focus

HONG KONG, Dec 5 (Reuters) - Hong Kong stocks are expected to fall on Friday, tracking losses on Wall Street, with investors likely to focus on finance and property stocks amid a gloomy outlook of the real estate sector after a major developer cut its sales target.

A 3.3 percent decline in HSBC's (0005.HK) (HBC.N) ADR shares in the U.S. may also weigh on the market.

"Some 200 points downside is expected, but it will not dive too far below as Chinese enterprise stocks are seen to be in demand on hope of support from the (Chinese) government," said Francis Lun, general manager from Fulbright Securities.

However, a sharp drop in oil prices may give support to Chinese refiners such as Sinopec (0386.HK) and PetroChina (0857.HK) and may help lift the burden of airlines' high fuel costs. Lun said Chinese oil refiners are in demand due to lower oil prices, and property stocks will remain under pressure amid a gloomy outlook for the industry.

Hong Kong shares fell 0.6 percent on Thursday with the benchmark Hang Seng Index .HSI closed the session 78.88 points lower at 13,509.78.

Investors may remain cautious ahead of the release of November jobless data in the U.S. later on Friday.

STOCKS TO WATCH:

* China's Yanzhou Coal Mining Co Ltd (600188.SS) (1171.HK) is in talks to buy Australian coal producer Felix Resources Ltd FLX.AX for more than A$3 billion ($1.9 billion), the Australian Financial Review said on Friday. Felix declined immediate comment on the report but said it would make a statement later in the day to clarify the situation [ID:nSYD426769]. The Chinese coal miner was not immediately available for comment.

* Developer Sun Hung Kai Properties (0016.HK) has cut its apartment sales target by 20 percent to HK$16 billion for this fiscal year ending in June 2009 from HK$20 billion as the global financial crisis hits Hong Kong's property market, but it expects a market pick-up in early 2009. [ID:nHKG31219]

A company spokeswoman said late on Thursday the sales target was revised down as sales of its luxury units in Shatin in the New Territories would be booked partly in this fiscal year and partly in the next fiscal year.

* China WindPower Group Ltd (0182.HK) plans to slow its expansion in the coming fiscal year as the global financial crisis makes it tougher to secure funding for the power plants that it builds, a company executive said. [ID:nHKG286900]

* Shenzhen Yantian Port Group said on Thursday Hutchison Whampoa Ltd (0013.HK), the world's biggest container terminal operator, had agreed to invest in a container terminal in the city's Yantian East area. [ID:nHKG299267]

* China, the world's top consumer and producer of primary aluminium, may be considering canceling a 15 percent tax on exports of primary aluminium to help smelters, a move that could boost exports and push down international prices, industry sources said on Thursday.

Weak domestic demand and reduced export orders for aluminium products have forced smelters, including top producer Chalco (2600.HK)(601600.SS), to cut aluminium production and reduce jobs, adding pressure to the already slowing economy in the country. [ID:nHKG299308]

* Shanghai Electric Group (2727.HK) (601727.SS) said on Thursday its domestic A shares would be listed in Shanghai on Friday. The heavy equipment maker said it has secured more than 80 billion yuan worth of orders in 2008, with outstanding orders in power equipment, heavy machinery and transportation equipment divisions valued at over 180 billion yuan as of Sept 30. ---------------- MARKET SNAPSHOT @ 2336 GMT ------------------

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 .SPX 845.22 -2.93% -25.520

USD/JPY JPY= 92.41 0.16% 0.150

10-YR US TSY YLD US10YT=RR 2.555 -- 0.000

SPOT GOLD XAU= $765.40 -0.04% -0.300

US CRUDE CLc1 $43.76 0.21% 0.090

DOW JONES .DJI 8376.24 -2.51% -215.45

ASIA ADRS .BKAS 80.85 -4.87% -4.14 -------------------------------------------------------------- US STOCKS-Fall on sliding energy sector, weak outlook [.N]> SE Asia Stocks-Indonesia leads gains on rate cut [.SO]> Oil falls $3 to lowest in nearly 4 years [O/R]> FOREX-Dollar falls vs euro after ECB cut, jobs data loom [USD/]> TREASURIES-Rally on mortgage-related buying, stock slide [US/]> PRECIOUS-Gold ends lower on weak oil, deflation fears [GOL/] (US$1=HK$7.8) (Reporting by Donny Kwok, Editing by Ken Wills)