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
Elsewhere in Asia, Japan's Nikkei rose 0.5 percent,
while South Korea's KOSPI was 2.1 percent higher at 0049
FACTORS TO WATCH:
* 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
* 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