HK stocks set to rebound, China Mobile in focus

HONG KONG, May 27 (Reuters) - Hong Kong stock are expected to
rebound slightly on Tuesday, following gains in overseas markets,
with China Mobile (0941.HK) likely to rise following a recent
sell-off after Beijing unveiled a long-awaited sector revamp.

But worries over inflation and the health of the global
economy may cap the upside, market watchers said.

"It (China Mobile) has been oversold and a rebound may help
to boost the index," said Conita Hung, head of equity research
from Delta Asia Financial.

"Some 100 to 200 points upside is expected but the index is
seen capped at 24,300 without much fresh incentives, and
investors may worry again about (China) inflation," Hung added.

The benchmark Hang Seng Index .HSI lost 586.76 points to
close at 24,127.31, weighed down by a 8.15 percent slide in China
Mobile after being downgraded amid an industry reshuffle.

Brokers said insurance stocks were expected to remain weak,
with investors sidelined amid expectations of further Chinese
government moves to curb inflation.

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, fell 3.04 percent to 13,221.28 on
Monday.
----------------------MARKET SNAPSHOT @ 0018 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1375.93 -1.32% -18.420
USD/JPY JPY= 103.35 -0% 0.000
10-YR US TSY YLD US10YT=RR 3.8558 -- 0.006
SPOT GOLD XAU= 929.65 0.17% 1.550
US CRUDE CLc1 133.28 0.82% 1.090
DOW JONES .DJI 12479.63 -1.16% -145.99
ASIA ADRS .BKAS 161.09 -1.90% -3.12
-------------------------------------------------------------

FACTORS TO WATCH:
* Nikkei up 0.4 pct after previous day's fall [.T]
* Record oil fuels markets' worst week in 3 months [.N]
* Asian shares seen falling on oil worries [STXNEWS/AS]
* Oil above $133 on Nigeria, North Sea [O/R]
* Dollar ekes out gains in ultra-thin holiday trade [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

STOCKS TO WATCH:

* Maoye International Holdings (0848.HK) said it would issue
an additional 26.86 million new shares at an issue price of
HK$3.10 each, to cover over allocation of shares during its IPO.
For details please see
here

* Zhengzhou Gas Co (3928.HK) said its shareholders had
approved its plan to issue up to 42 million A shares to be listed
on the Shenzhen Stock Exchange, raising capital to expand its
businesses in sale of natural gas, pressure control equipment and
gas appliances, and the construction and maintenance of gas
pipelines in China. The final structure of the issue is subject
to approval by relevant authorities.
here

* Shanghai Industrial Holdings (0363.HK) said it would see a
HK$325 million gain from the sale of its 20 percent stake in
non-core information technology development and consultancy
services joint venture in the mainland to the company's major
shareholder for HK$775 million. Flor details please see
here
* Tsingtao Brewery Co (0168.HK) said it would buy from its
substantial shareholder remaining interests in 24 subsidiaries
and a 100 percent stake in 2 other firms for a total 102.83
million yuan. For details please see
here

* Jinhui Holdings (0137.HK) said its 54.77 percent owned and
Olso-listed Jinhui Shipping and Transportation posted a more than
three-fold rise in net profit to US$43.3 million for the first
quarter of 2008. For details please see
here

* Industrial and Commercial Bank of China (1398.HK) said
Australian Prudential Regulation Authority and China Banking
Regulatory Commission had granted the bank a formal approval on
establishment of a Sydney Branch. For details please see
here

* Value Partners Group (0806.HK) said its unaudited assets
under management as at April 30 were about US$6.5 billion, an
increase of US$0.6 billion compared with the end of the preceding
month. For details please see
here

* SOHO China (0410.HK) said it would buy Chaoyangmen SOHO, a
commerical property development project in Beijing, and entire
interest and debt in Beijing Kaiheng Real Estate Co in deal worth
5.5 billion yuan, a move to tap the continuing growth of the
mainland property market. For details please see
here
(US$1=HK$7.8)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree)