HONG KONG Oct 28 Hong Kong shares may start
higher on Monday after a top Chinese leader reportedly promised
"unprecedented" economic and societal reforms at the Communist
Party's much anticipated plenum meeting next month.
But investors will be cautiously watching China's short-term
money rates as the month draws to a close, after the central
bank moved to limit supply as demand spikes. Money rates last
week spiked to their highest levels since June's dramatic cash
The official Xinhua news agency reported on Saturday that Yu
Zhengsheng, the fourth-ranked member in the elite Politburo
Standing Committee of the Communist Party, said the closed-door
meeting would "principally explore the issue of deep and
China Telecom, Anhui Conch Cement and
COSCO Pacific are among companies due to report
quarterly earnings later in the day.
The Hang Seng Index finished down 0.6 percent on Friday at
22,698.3 points, its lowest close since Sept. 6, while the China
Enterprises Index of the top Chinese listings in Hong
Kong fell 1.4 percent.
Elsewhere in Asia, Japan's Nikkei was up 1.1
percent, while South Korea's KOSPI was down 0.1 percent
at 0057 GMT.
FACTORS TO WATCH:
* Shanghai will increase the supply of affordable housing
following home price rises in September, Vice Mayor Yang Xiong
said on Sunday.
* China has eliminated some registered capital requirements
for establishing new companies, the government said on Sunday,
in a move to support long-term growth by cutting red tape and
supporting small businesses.
* China Construction Bank Corp , the
country's No.2 lender, reported its slowest third-quarter
earnings growth in more than five years on Sunday, as increased
loan-loss provisions eroded profits.
* The trading arm of China's Guangzhou city government is to
buy three quarters of Hong Kong's Chong Hing Bank Ltd
for about HK$11.64 billion ($1.5 billion), underscoring the
island's attraction for mainland and foreign lenders alike.
* China's Dongfeng Motor Group is still weighing
the benefits of investing in loss-making PSA Peugeot Citroen
, a top Dongfeng executive said, hinting that a deal
with the French carmaker could take a long time.
* China Life Insurance Co Ltd , the
world's biggest insurer by market value, swung to a
third-quarter profit of 7.5 billion yuan ($1.2 billion) from a
loss a year earlier. Smaller rival Ping An Insurance Group Co of
China Ltd more than doubled its profit.
* China Shenhua Energy Co Ltd , the
country's largest coal producer, posted a 22 percent drop in
third-quarter net profit, due to weak coal prices caused by
ample supplies and flagging demand.
* China Railway Construction Corp Ltd
said its units won projects in Sichuan province worth 15.58
billion yuan ($2.6 billion).