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Hong Kong shares seen subdued ahead of Fed policy guidance

Source : REUTERS
Last Updated: Wed, Jun 19, 2013 01:20 hrs

HONG KONG, June 19 (Reuters) - Hong Kong shares may start lower on Wednesday, with turnover likely weak as most investors stay on the sidelines awaiting the outcome of a two-day U.S. Federal Reserve rate-setting meeting later in the day.

On Tuesday, the Hang Seng Index closed flat at 21,225.88 points, while the China Enterprises Index of the top Chinese listings in Hong Kong slipped 0.1 percent.

Elsewhere in Asia, Japan's Nikkei was up 1.8 percent, while South Korea's KOSPI was down 0.5 percent at 0059 GMT.

FACTORS TO WATCH:

* China Mengniu Dairy Co Ltd signed a second takeover deal in a month on Tuesday, offering to buy Carlyle-backed Yashili International Holdings Ltd in a deal worth about HK$12.5 billion ($1.6 billion) as part of a plan to expand its milk powder business.

* Hong Kong's de facto central bank said on Tuesday that its investigation into possible benchmark rate manipulation has been extended to include HSBC and a number of other banks.

* Chow Tai Fook Jewellery Group Ltd, the world's largest jewellery retailer by market value, posted a 13 percent fall in net profit for the year ended March, as slower economic growth and a crackdown on luxury spending weighed on sales.

* Huabao International Holdings Ltd, which produces and supplies flavours and fragrances for food, tobacco and household products, posted a 1.9 percent fall in yearly net profit to HK$1.7 billion.

* Sinopec Corp, Asia's largest refiner, has from the end of May cut the sulphur content of diesel for agricultural, industrial and shipping use as part of a national effort to help clear the smoggy skies of Chinese cities.

* Agricultural Bank of China Ltd said it would issue up to 50 billion yuan tier-2 capital instruments by end of 2015, raising capital to replenish tier-2 capital and increase the capital adequacy ratio of the bank. The capital instruments will have maturity of no less than 5 years and will be issued to domestic institutional investors in China.(Reporting by Clement Tan and Donny Kwok; Editing by Shri Navaratnam)




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