HK shares seen higher, but set for 1st weekly loss in 4
HONG KONG, April 27 (Reuters) - Hong Kong shares could start
higher on Friday, tracking Wall Street gains spurred by strong
U.S. housing data, but are set for their first weekly loss in
four in turnover that has remained consistently thin all week.
Bank of China, the mainland's third-largest lender by market value, may be in focus after it posted late on Thursday a 9.8 percent rise in quarterly profit that underwhelmed estimates.
Its disappointing earnings set a muted tone for its three peers that report on Friday, with Chinese banks facing growing pressure as more borrowers struggle to repay loans in the face of a slowing economy.
Several other companies are also expected to post earnings results, including Aluminum Corporation of China Ltd (CHALCO) , Ping An Insurance (Group) Co of China Ltd and China Shenhua Energy Co Ltd.
Haitong Securities Co Ltd, China's second-biggest brokerage by assets, is set to make its Hong Kong listing debut on Friday. It had priced its $1.7 billion initial share offering near the bottom of an indicative range last Friday.
On Thursday, the Hang Seng Index rose 0.8 percent, while the China Enterprises Index of the top mainland listings in Hong Kong gained 0.9 percent. On the week, they are down 1 percent and 1.3 percent, respectively.
Short selling interest accounted for 10.1 percent of total bourse turnover on Thursday, the highest since March 28. Turnover on the Hong Kong bourse picked up mildly on Thursday from Wednesday, but was still some 15 percent below average.
Elsewhere in Asia, Japan's Nikkei was up 0.3 percent and South Korea's KOSPI was up 0.9 percent at 0047 GMT.
FACTORS TO WATCH:
* Sinopec Corp, Asia's largest refiner, missed forecasts with a worse-than-expected 35 percent drop in first-quarter profit, which was dragged down by losses from selling diesel and gasoline at state-controlled prices.
* PetroChina, Asia's biggest company by market value, reported a 5.8 percent rise in first-quarter profit, beating forecasts, as strong oil and natural gas production gains offset losses racked up by its refining and chemicals businesses.
* Datang International Power said its first-quarter profit rose 344 percent to 387.5 million yuan.
* China COSCO Holdings Co Ltd, flagship of the country's biggest shipping conglomerate, made a net loss in the first-quarter of 2.7 billion yuan ($429 million) as a continued supply glut in its bulk carrier business pushed freight rates to loss-making levels.
* National flag carrier Air China said its first-quarter profit plunged 85.7 percent to 239.1 million yuan.
* Air China Ltd said it would issue 1.05 billion yuan ($166.56 million) worth of new A shares to its controlling shareholder, raising money to reduce bank borrowing and for working capital. It will issue 188.64 million new A shares to China National Aviation Holding Company at 5.57 yuan each.
* China Southern Airlines said first-quarter profit fell 74 percent year-on-year to 319 million yuan.
* China Eastern Airlines is set to place a $6 billion order for up to 20 Boeing 777 jets, while simultaneously emerging at the centre of a row between China and the European Union by stalling a separate deal with Airbus, people familiar with the matter said.
* Speculation mounted on Thursday that Chinese aluminium giant Chalco's plan to buy a majority stake of Canadian coal miner SouthGobi Resources Ltd and take control of its projects in Mongolia could be sideswiped by new Mongolian government legislation.
* Huabao International, a Chinese tobacco-flavouring supplier, said on Thursday it was preparing a response to allegations that the company falsely reported financial information and that trading in its shares would remain suspended.
* Tsingtao Brewery Co Ltd , China's second-largest beer maker by volume, reported a 14.5 percent rise in first-quarter net profit on Thursday despite high barley costs and a high earnings base a year earlier.
* Top aluminium supplier United Co. RUSAL's seven-year term contract with trader Glencore International will allow the producer to secure sales at near record-high premiums over spot prices this year, a RUSAL executive said on Thursday.
* China gold mining group Zijin Mining Group Co Ltd said its first-quarter profit fell 23.3 percent year-on-year to 1.07 billion yuan.
* China Shipping Development posted a 320.7 million yuan loss for the three months ended in March, against a 382 million yuan profit in a year earlier.
* China Oilfield said first-quarter profit rose 23.5 percent to 1.19 billion yuan.
* China Minsheng Banking Corp posted a 48 percent rise in first-quarter profit to 9.17 billion yuan.
* Brazilian billionaire Eike Batista said on Thursday that he and Foxconn are planning a factory worth $1 billion at an industrial complex in the state of Rio de Janeiro to build batteries, solar panels and efficient street lamps.
* Foxconn International Holdings Ltd warned of a significant increase in net losses for the six months to June due to lower sales resulting from weaker demand from some of its major customers. It also warned of a decline in gross profit margins due to unfavourable pricing changes and increased costs associated with product migrations. For statement click here (Reporting by Clement Tan and Donny Kwok; Editing by Chris Gallagher)
Bank of China, the mainland's third-largest lender by market value, may be in focus after it posted late on Thursday a 9.8 percent rise in quarterly profit that underwhelmed estimates.
Its disappointing earnings set a muted tone for its three peers that report on Friday, with Chinese banks facing growing pressure as more borrowers struggle to repay loans in the face of a slowing economy.
Several other companies are also expected to post earnings results, including Aluminum Corporation of China Ltd (CHALCO) , Ping An Insurance (Group) Co of China Ltd and China Shenhua Energy Co Ltd.
Haitong Securities Co Ltd, China's second-biggest brokerage by assets, is set to make its Hong Kong listing debut on Friday. It had priced its $1.7 billion initial share offering near the bottom of an indicative range last Friday.
On Thursday, the Hang Seng Index rose 0.8 percent, while the China Enterprises Index of the top mainland listings in Hong Kong gained 0.9 percent. On the week, they are down 1 percent and 1.3 percent, respectively.
Short selling interest accounted for 10.1 percent of total bourse turnover on Thursday, the highest since March 28. Turnover on the Hong Kong bourse picked up mildly on Thursday from Wednesday, but was still some 15 percent below average.
Elsewhere in Asia, Japan's Nikkei was up 0.3 percent and South Korea's KOSPI was up 0.9 percent at 0047 GMT.
FACTORS TO WATCH:
* Sinopec Corp, Asia's largest refiner, missed forecasts with a worse-than-expected 35 percent drop in first-quarter profit, which was dragged down by losses from selling diesel and gasoline at state-controlled prices.
* PetroChina, Asia's biggest company by market value, reported a 5.8 percent rise in first-quarter profit, beating forecasts, as strong oil and natural gas production gains offset losses racked up by its refining and chemicals businesses.
* Datang International Power said its first-quarter profit rose 344 percent to 387.5 million yuan.
* China COSCO Holdings Co Ltd, flagship of the country's biggest shipping conglomerate, made a net loss in the first-quarter of 2.7 billion yuan ($429 million) as a continued supply glut in its bulk carrier business pushed freight rates to loss-making levels.
* National flag carrier Air China said its first-quarter profit plunged 85.7 percent to 239.1 million yuan.
* Air China Ltd said it would issue 1.05 billion yuan ($166.56 million) worth of new A shares to its controlling shareholder, raising money to reduce bank borrowing and for working capital. It will issue 188.64 million new A shares to China National Aviation Holding Company at 5.57 yuan each.
* China Southern Airlines said first-quarter profit fell 74 percent year-on-year to 319 million yuan.
* China Eastern Airlines is set to place a $6 billion order for up to 20 Boeing 777 jets, while simultaneously emerging at the centre of a row between China and the European Union by stalling a separate deal with Airbus, people familiar with the matter said.
* Speculation mounted on Thursday that Chinese aluminium giant Chalco's plan to buy a majority stake of Canadian coal miner SouthGobi Resources Ltd and take control of its projects in Mongolia could be sideswiped by new Mongolian government legislation.
* Huabao International, a Chinese tobacco-flavouring supplier, said on Thursday it was preparing a response to allegations that the company falsely reported financial information and that trading in its shares would remain suspended.
* Tsingtao Brewery Co Ltd , China's second-largest beer maker by volume, reported a 14.5 percent rise in first-quarter net profit on Thursday despite high barley costs and a high earnings base a year earlier.
* Top aluminium supplier United Co. RUSAL's seven-year term contract with trader Glencore International will allow the producer to secure sales at near record-high premiums over spot prices this year, a RUSAL executive said on Thursday.
* China gold mining group Zijin Mining Group Co Ltd said its first-quarter profit fell 23.3 percent year-on-year to 1.07 billion yuan.
* China Shipping Development posted a 320.7 million yuan loss for the three months ended in March, against a 382 million yuan profit in a year earlier.
* China Oilfield said first-quarter profit rose 23.5 percent to 1.19 billion yuan.
* China Minsheng Banking Corp posted a 48 percent rise in first-quarter profit to 9.17 billion yuan.
* Brazilian billionaire Eike Batista said on Thursday that he and Foxconn are planning a factory worth $1 billion at an industrial complex in the state of Rio de Janeiro to build batteries, solar panels and efficient street lamps.
* Foxconn International Holdings Ltd warned of a significant increase in net losses for the six months to June due to lower sales resulting from weaker demand from some of its major customers. It also warned of a decline in gross profit margins due to unfavourable pricing changes and increased costs associated with product migrations. For statement click here (Reporting by Clement Tan and Donny Kwok; Editing by Chris Gallagher)
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