HONG KONG, Jan 8 (Reuters) - Hong Kong shares could start
lower on Tuesday, after Wall Street retreated from 5-year highs
as investors took profits on the new year rally which has driven
markets near their most overbought state in more than two years.
On Monday, the Hang Seng Index ended flat at
23,329.8, nearing levels set last Thursday that were its highest
close since June 1, 2011. The China Enterprises Index of
top Chinese listings in Hong Kong rose 0.3 percent.
Their respective relative strength index values
suggest both indexes are just off their most overbought levels
since October 2010: 74.5 for HSI and 78.6 for HSCE, their
highest since Oct 2010 is 77.4 and 80.2 on Jan. 3.
Elsewhere in Asia, Japan's Nikkei was flat, while
South Korea's KOSPI was down 0.2 percent at 0104 GMT.
FACTORS TO WATCH:
* Carlyle Group CG.O plans to sell its remaining stake in
China's third-largest insurer CPIC in a deal valued at
up to $790 million, according to an outline agreement seen by
* China said it has yet to approve U.S. planemaker Boeing's
787 Dreamliner, which has put on hold the delivery of the
jet to the world's fastest-growing aviation market. China
Southern Airlines Co Ltd , which has
outstanding orders for 10 Dreamliner B787s, had expected to
receive its first plane in 2012, but that has been delayed as
the U.S. company has yet to receive certification from Chinese
* China Vanke Co Ltd, the country's largest real
estate developer by revenue, said its December sales soared 142
percent to 14.1 billion yuan ($2 billion). In a statement on
Monday it also forecast robust sales in January as China's
property market shows signs of recovery.
* BYD Co Ltd , a Chinese carmaker backed
by billionaire investor Warren Buffett, said on Monday it had
gained official permission to sell its electric buses in all
European Union member states.
* Shimao Property Holdings Ltd said it planned to
issue $800 million 6.625 percent senior notes due 2020 to
refinance debt and to fund existing and new property development
* Glass products maker China Glass Holdings Ltd
said it expected to record a loss for year ended in December
2012 due to economic slowdown.(Reporting by Clement Tan and Donny Kwok; Editing by XXX)