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
FACTORS TO WATCH:
* 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
* 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
* 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
* 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)