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Hong Kong shares seen weak, China banks under pressure

Source : REUTERS
Last Updated: Fri, Jul 06, 2012 15:22 hrs

HONG KONG, July 6 (Reuters) - Hong Kong shares are poised for a tepid start on Friday despite central bank easing in China and in Europe as investors remain concerned that global economic growth may be worse than feared.

Chinese banking shares, which carry hefty weights on Hong Kong benchmark indices are seen under pressure on worries that the People's Bank of China's second cut in interest rates in two months will further erode net interest margins.

The Hang Seng index ended up 0.5 percent on Thursday helped largely by a late-session rally in financials and local bluechips such as Cheung Kong Holdings.

Elsewhere in Asia, Japan's Nikkei was little changed while South Korea's KOSPI was down 0.4 percent as of 0045 GMT.

STOCKS TO WATCH

* Macau casino Melco Crown and Philippine leisure firm Belle Corp signed a conditional deal to develop a $1 billion casino-hotel that will see some of Asia's biggest tycoons team up in Manila, touted as a promising new gambling market.

* For Fu Chengyu, the acquisitive chairman of Sinopec Corp , a battle of wits looms on Friday as a consortium backed by the Chinese oil giant faces a deadline on whether to pursue its unsolicited $2.2 billion offer for China Gas Holdings .

* Chinese coal miner Inner Mongolia Yitai Coal Co Ltd has priced its Hong Kong share offer at the bottom of an indicative range, putting it on course to raise about HK$7 billion ($903 million), IFR reported.

* Top Chinese automaker SAIC Motor Corp said on Thursday its June sales rose 11.9 percent to 355,512 vehicles, down from the 20.9 percent year-on-year growth achieved in May.

* Chinese Estates Holdings Ltd and its controlling shareholder Joseph Lau have agreed to sell all their 62.26 percent stake in G-Prop (Holdings) Ltd to Champion Dynasty Ltd, owned by businessman Cheung Wai Kuen, for HK$423.7 million. Champion will make a general offer for all outstanding shares it does already own at HK$0.28019 each, representing 46 percent premium over G-Prop last closing price. For statement clicks http://www.hkexnews.hk/listedco/listconews/sehk/2012/0705/LTN20120705971.pdf

MARKET EVENTS

- East Global Group Ltd EGM

- ENN Energy Holdings Ltd EGM

- Jiwa Bio-Pharm Holdings Ltd AGM

- New Times Energy Corporation Ltd SGM

- O-Net Communications (Group) Ltd EGM

NEW LISTING

- China Aluminum International Engineering Corporation Ltd trading debut

- Merry Garden Holdings Ltd trading debut

ECONOMIC DATA

- Hong Kong Monetary Authority to release Hong Kong Forex Reserves for June

- UK PPI input and output prices for June

- US average earnings for June

- US government payrolls for June

- US unemployment rate for June

- Canada unemployment rate for June

- Canada participation rate for June

- Japan leading indicator for May

- Japan coincident indicator for May (Reporting by Vikram Subhedar and Donny Kwok)



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