Hong Kong shares may start higher on Wall St gains, China worries remain

Source : REUTERS
Last Updated: Thu, Jun 27, 2013 01:00 hrs

HONG KONG, June 27(Reuters) - Hong Kong shares may start higher on Thursday, tracking Wall Street's strength on eased concerns that the U.S. Federal Reserve will soon start to rein in stimulus measures, but traders said caution over Chinese markets may cap the upside.

The Hang Seng Index closed up 2.4 percent at 20,338.55 on Wednesday, while the China Enterprises Index of the top Chinese listings in Hong Kong rose 3.3 percent. Both had their biggest daily percentage gains since Jan. 2.

Elsewhere in Asia, Japan's Nikkei rose 0.5 percent, while South Korea's KOSPI was 2.1 percent higher at 0049 GMT.


* Sinopec Corp has proposed a $3.1 billion ethylene plant in east China that would be the top Asian refiner's first to use natural gas and liquefied petroleum gas (LPG) as a petrochemical feedstock.

* A takeover of holiday resorts group Club Med by French buyout house AXA Private Equity and China's Fosun International Ltd will be financed with around 240 million euros ($313.79 million) of bank loans, banking sources said on Wednesday.

* London Metal Exchange (LME) expects its in-house clearer LMEClear will charge members fees similar to provider LCH.Clearnet's just-tripled charges for clearing LME trades. Hong Kong Exchanges and Clearing (HKEx), which bought LME late last year for $2.2 billion, is under pressure to show a return on its acquisition, and is eyeing LMEClear for returns.

* Standard Chartered Plc brushed off fears that a slowdown in China's economy would hit the Asia-focused lender hard and said it would meet analysts' expectations for the full-year following an improved second-quarter.

* China's securities regulator has granted licences to HSBC Holdings Plc and Citigroup Inc allowing the two banks to distribute mutual funds and expand their services in the world's second-biggest economy, the two banks said on Wednesday.

* Piped-gas provider China Gas Holdings Ltd said its full-year net profit rose 85 percent to HK$1.8 billion.

* Aviation products maker AviChina Industry & Technology Co Ltd said it would buy a 100 percent equity interest in each of Beijing Keeven Aviation Instrument Co Ltd and Suzhou Changfeng Avionics Co Ltd from its controlling shareholder China Aviation Industry Corporation for 1.42 billion yuan, in a move expanding its production scale.(Reporting by Yimou Lee and Donny Kwok; Editing by Stephen Coates)

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