HONG KONG, Aug 15 (Reuters) - Hong Kong shares were set to rise on Monday following their worst fortnightly drop in 2-1/2 years as investors sidelined by the market’s volatility sift through battered down large caps.
The Hang Seng index fell 6.3 percent last week to close at 19,620. The China Enterprises Index of top locally listed mainland firms fell 8.6 percent, driven lower by sharp drops in cyclical names.
While global markets breathe a sigh of relief after last week’s moves and as economic data from the U.S. and Japan give some hope of recovery, investors are likely to remain cautious, particularly over Europe, and keep turnover muted.
Hong Kong developers could come under pressure after traders said prices dropped on weekend property sales as some buyers chose to forfeit deposits on expectations of further price declines.
A senior government official warned last week that the local property market was overheated. [ID:nL3E7JC1X2}
Elsewhere in Asia, Japan’s Nikkei was up 1.3 percent. South Korean markets were closed for a public holiday.
* Hong Kong telecommunications and media firm PCCW Ltd is sticking to its plan for a proposed spin-off and listing of its telecom assets in the fourth quarter, in spite of recent market volatility, a senior executive said on Friday.
* China Mobile Ltd , the world’s biggest mobile operator, said on Friday it will set up a finance unit with 5 billion yuan ($780 million), in a move that could disappoint shareholders hoping for a dividend hike.
* Tsingtao Brewery , China’s second-largest brewer by volume, posted slower profit growth in the first half of 2011 as soaring barley prices hit margins.
* Chongqing Rural Commercial Bank Co., Ltd said its net profit attributable to equity holders rose 34.6 percent year on year to 2.24 billion yuan for the first half of 2011. For statement click here (Reporting by Vikram Subhedar; Editing by Ken Wills)