HONG KONG, Dec 17 (Reuters) - Hong Kong stocks are expected
to fall on Monday, pacing losses on Wall Street, as investors
worry rising U.S. inflation may keep the Federal Reserve from
lowering interest rates, boding ill for local property shares.
A report on Friday showed a jump in the U.S. consumer price
index in Novemeber. Hong Kong's rate cycle tends to track that of
the U.S., since its currency is pegged to the U.S. dollar.
Brokers said the mainland property sector may also be hit.
"Mainland property is suffering from price cuts for the first
time this year," said Francis Lun, general manager at Fulbright
Securities.
For the broad market, Lun said to expect at least a 300-point
drop.
The benchmark Hang Seng index .HSI fell 0.7 percent to
27,563.64 on Friday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE dropped 2.3 percent to
15,957.46.
STOCKS TO WATCH:
* China Shenhua Energy (1088.HK), the country's top coal
producer, said on Monday its November coal output was 13.2
million tonnes, up 15.8 percent from its 2006 monthly average.
[ID:nSHA138649]
* China Eastern Airlines (0670.HK) intends to buy 40 Airbus
(EAD.PA) A320 aircraft under an agreement signed between France
and China and is in talks for a similar number of Boeing (BA.N)
737s to expand its domestic and regional routes, its senior
executive said [ID:nHKG137170].
* GOME Electrical Appliances (0493.HK), China's top
electronics retailer, said on Sunday it will have a dominant
position in key Chinese markets after taking over the management
of Beijing-based rival Dazhong Electrical Appliances.
* HSBC Holdings plc (0005.HK) will receive $1.5 billion in
Taiwan government funds and make a major cash infusion to rescue
the failed Chinese Bank, in the latest Taiwan acquisition by a
major foreign bank [ID:nPEK165267].
* Sinopec Shangahi (0338.HK) has sold a non-core, 0.16
percent stake in Guotai Junan Securities and a 0.16 pct stake in
Guotai Junan Asset Management to China Ping An Trust for 175
million yuan.
here
* Datang International (0991.HK) said its 12-month lock-up
period of 3.81 billion A shares held by 3 major shareholders
during an A share IPO is expiring and will begin trading on Dec
20.
here
FACTORS TO WATCH:
* Nikkei .N225 down, tracking falls on Wall Street [.T]
* Wall St Wk Ahead-Stocks eye housing and consumer data [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil drifts higher as US storm offsets economy fears [O/R]
* Dollar climbs sharply on consumer inflation data [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)
APT Satellite ATS.N(1045.HK) +2.5
China East Air (CEA.N)(0670.HK) +1.3
PetroChina (PTR.N)(0857.HK) -3.1
Aluminum Corp (ACH.N)(2600.HK) -4.5
Huaneng Power (HNP.N)(0902.HK) -5.0
(US$1=HK$7.8)
(Reporting by Rita Chang; Editing by Anne Marie Roantree)
