HONG KONG, Nov 17 (Reuters) - Hong Kong shares are likely to fall on Monday, with export-oriented stocks such as Li & Fung (0494.HK) under pressure after U.S. retail sales posted their steepest drop ever in October.
Investors may also find little comfort over the outcome of the weekend meeting of the Group of 20 developed and developing countries, which failed to come up with concrete measures to ease the looming global recession.
Local developers such as billionaire Li Ka shing's Cheung Kong (Holdings) (0001.HK) and retailer Esprit Holdings (0330.HK) may also fall after figures last week showed Hong Kong slipped into recession in the third quarter and the outlook was grim.
"It's going to be a bad day for stocks. Everything is terrible. The G20 meeting concluded with no favorable result," said Francis Lun, general manager at Fulbright Securities. "Hong Kong properties will be hit the hardest."
The benchmark Hang Seng Index .HSI rose 2.4 percent on Friday to 13,542.66, as Chinese properties gained on hopes of further easing of borrowing costs on the mainland. For the week, though, the key index fell 5 percent.
The index may fall to the 12,000 level this week, Lun said.
STOCKS TO WATCH
* CITIC Pacific (0267.HK) has no immediate plan to sell assets to boost its finances, the South China Morning Post said Monday, citing the deputy chairman of its parent CITIC Group. The steel-to-property conglomerate last week was rescued by its parent after incurring losses from foreign exchange trading.
* China Southern Airlines (1055.HK) and China Eastern Airlines (0670.HK). The state parents of the two mainland carriers may get government cash injections of $440 million each to cope with high costs and weak demand, an official newspaper said on Monday.
* China Unicom (0762.HK) said on Sunday a proposed parent merger between China United Telecommunications Corp, and China Network Communications Group Corp will become effective in early January 2009, a move to enhance management efficiency of the parent companies and further facilitate the integration between China Unicom and China Netcom. For statement please see here * China Merchants Holdings (0144.HK) said on Sunday it would sell its non-core 64 percent stake in paint products maker Hempel-Hai Hong and certain trademarks to the Denmark joint venture partner Hempel A/S for HK$1.15 billion cash, a move to allow the Chinese company to focus resources on core ports and ports-related business. For statement please see here
* Wing Hang Bank 0302.HK said last Friday it would make a full provision for its exposure to HK$377 million worth of US dollars, Euros and New Zealand dollar denominated bonds issued by two major banks in Iceland with a post-tax impairment loss of HK$315 million.The bank said its loss will not have any significant impact on its business. For statement please see here
(Editing By Keiron Henderson)