Hong Kong shares may rise, but chart resistance looms

Last Updated: Wed, Jan 23, 2013 01:10 hrs

HONG KONG, Jan 23 (Reuters) - Hong Kong shares could start higher on Wednesday, tracking Wall Street gains after upbeat U.S. earnings, but gains could be capped by chart resistance after a strong start to the year.

On Tuesday, the Hang Seng Index closed up 0.3 percent at 23,659.0 on Tuesday, with chart resistance around 23,708, its high on May 31, 2011. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 0.6 percent.

Elsewhere in Asia, Japan's Nikkei was down 0.8 percent, while South Korea's KOSPI was up 0.2 percent at 0050 GMT.


* Vale SA , the world's second-largest mining company, is considering setting up an iron ore distribution centre in a southern Chinese port where Baosteel is building a 10 million tonne-per-year steel project, industry sources said on Tuesday.

* Major Chinese automaker Dongfeng Motor Group Co has agreed to set up a 55-45 truck venture with Volvo in China, the Chinese Business News said on Tuesday.

* Sinopec, China's second-largest oil and gas producer by output, will add 10 billion cubic metres (bcm) of annual natural gas production capacity by 2015 using its own technology to develop high-sulphur gas fields, the China Daily said on Tuesday.

* Chinese watch retailer Hengdeli Holdings Ltd said it would issue $350 million 6.25 percent senior notes due 2018, raising proceeds to redeem its outstanding 2015 Convertible Bonds, to refinance debt obligations and for general corporate purposes.

* Longfor Properties Co Ltd said it would issue $500 million 6.75 perent senior notes due 2023, raising proceeds to refinance its indebtedness.

* Shenzhen Investment Ltd said it would buy a company, which owned a site in Futian District in Shenzhen, for 4.15 billion yuan as it increases its land bank in Shenzhen. The deal will be settled by issue of 1.41 billion new shares at HK$3.667 each.

* Sihuan Pharmaceutical Holdings Group said the active pharmaceutical ingredients and injection form of its new product Benapenem - antibiotics which are used to treat multiple drug resistance in hospitals, has received the approval for clinical studies from the State Food and Drug Administration. It said the product has been patented in China and the United States.

* Casual wear chain operator Bossini International Holdings Ltd said it expected to record a substantial decrease in profit for six months ended in December as compared to a year ago due to a drop in operating profit in export franchising business, widened losses from Taiwan operation and rental increment of major shops in Hong Kong.

* Jilin Qifeng Chemical Finer Co Ltd said it expected to record a significant loss for 2012 due to decrease in sales volume and average selling price of acrylic fibre products as a result of global economic downturn.(Reporting by Clement Tan and Donny Kwok; Editing by XXX)

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