HK stocks should rise with U.S., China plays

HONG KONG, May 29 (Reuters) - Hong Kong stocks should rise
on Thursday, with China and financial plays in focus, and
following a boost on Wall Street after U.S. durable goods orders
showed surprising strength.

"If the A share market in Shanghai continues to stabilise,
it will lift H shares here, and boost mainland-focused blue
chips," said Conita Hung, a director at Delta Asia Financial
Group, adding that life insurers China Life (2628.HK) and Ping An
(2318.HK) could rise.

"The gains in U.S. markets reflect the news in the goods
report, and as usual Hong Kong should follow."

Shanghai stocks rose sharply on Wednesday, led by a late
surge in brokerages and banks, on speculation that authorities
might soon announce the long-delayed launch of stock index
futures.

On Wednesday, Hong Kong's benchmark Hang Seng Index .HSI
slipped 0.13 percent to 24,249.51, led by a 5.08 percent slide in
oil and gas producer CNOOC (0883.HK).

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, rose 0.34 percent to 13,374.74.

STOCKS TO WATCH:

* Champion REIT (2778.HK) plans to raise $1.66 billion
through unit and bond sales as well as bank loans to help fund
its purchase of Langham Place from Great Eagle Holdings (0041.HK)
For details, please see
here

* China Southern Airlines (1055.HK) said it planned to issue
1.5 billion yuan ($216 million) worth of 3-year medium term
notes to institutional investors in China, raising capital to
fund capital expenditure of the company. For details please see
here

* Wing Hang Bank (0302.HK) said it was not aware of the
reasons behind the recent rise in its share price, and said there
were no discloseable negotiations or agreements relating to
intended acquisitions. For details, see
here

Media reports have speculated that China's No.1 life insurer,
China Life (2628.HK), had started negotiations with the
controlling shareholder of Wing Hang, and is interested in buying
a stake in the Hong Kong lender.

----------------------MARKET SNAPSHOT @ 0100 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1390.84 0.4% 5.490
USD/JPY JPY= 104.58 -0.1% -0.100
10-YR US TSY YLD US10YT=RR 4.0052 -- 0.008
SPOT GOLD XAU= 902.5 0.27% 2.400
US CRUDE CLc1 130.69 -0.26% -0.340
DOW JONES .DJI 12594.03 0.36% 45.68
ASIA ADRS .BKAS 160.69 -0.51% -0.82
-------------------------------------------------------------
FACTORS TO WATCH:
* Nikkei .N225 0.9 pct as Kyocera, exporters gain [.T]
* U.S. stocks-Wall St buoyed by signs of business investment [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil rebounds over $131 a barrel [O/R]
* Dollar rises as data supports U.S. rates outlook [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)

Yanzhou Coal (YZC.N)(1171.HK) +5.8

Huaneng Power (HNP.N)(0902.HK) +4.5

Aluminum Corp (ACH.N)(2600.HK) +1.4

Sinopec Shanghai Petroleum (SHI.N)(0338.HK) +0.8

China East Air (CEA.N)(0670.HK) +0.8

(US$1=HK$7.8)