HK stocks seen hitting record, China plays in focus

Hong Kong stocks may breach 30,000 points on Friday following multiple attempts to stay above the key mark, as mainland names such as PetroChina Co Ltd should rebound a day after investors dumped them after steep falls in China's stock markets. China's top oil producer should also get an extra boost ahead of its mega share sale in Shanghai next month after saying on Thursday it would soon have news on a big gas discovery and it had an eye open for acquisitions. It also unveiled a big bill for its planned cross-China pipeline, the country's second west-east gas link, which will need total investment of $13.6 billion. [ID:nHKG35736] Mainland financials are also expected to outperform, following strong results by Ping An Insurance (Group) Co of China Ltd and Industrial & Commercial Bank of China . "The consolidation in Hong Kong may be finished earlier than expected," said Steve Leung, director at UOB Kay Hian Holdings, adding that he expected the market to stay above the 30,000-mark. Though investors widely expect China to announce an interest rate increase after the country reported strong macro data, Leung said Thursday's sell-off in China stocks was overdone on those expectations. "The Chinese government will continue their mild policy of tightening credit, and I only expect (a rise of) 27 bps," he said. The benchmark Hang Seng index <.hsi> climbed 1.8 percent to 29,854.49 on Thursday. The China Enterprises Index of Hong Kong-listed mainland companies <.hsce> fell 0.2 percent to 19,551.21. STOCKS TO WATCH: * Ping An posted a more than four-fold jump in third-quarter net profit to 3.6 billion yuan and nine-month profit to 11.7 billion yuan. http://main.ednews.hk/listedco/listconews/sehk/20071025/LTN20071025444.pdf * Industrial and Commercial Bank of China Ltd , which has agreed to buy 20 percent of South Africa's largest bank, posted a 76 percent jump in third-quarter profit thanks to a widening interest margin and fee income growth. [ID:nHKG133534] Standard Bank , said on Thursday it was in talks to launch a $1 billion resource fund with ICBC.[ID:nL25827936] * Sinotrans Shipping Ltd, which is owned by mainland Chinese logistics giant Sinotrans (Group) Co, has won approval from the Hong Kong Stock Exchange for an initial public offering expected to be worth more than US$1 billion, sources familiar with the deal said on Thursday. [ID:nHKG137646] * Datang Power said its unaudited third-quarter profit was at 848 million yuan in accordance with Chinese accounting standards. http://main.ednews.hk/listedco/listconews/sehk/20071025/LTN20071025352.pdf * The following companies are expected to report their earnings later in the day: - Yanzhou Coal - China Unicom - Anhui Conch Cement FACTORS TO WATCH: * Nikkei <.n225> opens up 0.5 pct, Sony awash with buy orders[.T] * U.S. stocks-Earnings, write-downs hit Wall St; Microsoft up[.N] * STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA] * Oil hits record over $90, OPEC cold to new hike [O/R] * Dollar near lifetime low vs euro, rate cut eyed [USD/] * For upcoming Hong Kong events, click on [HK/DIARY] * For Hong Kong press digest, click on [PRESS/HK] KEY HK ADR MOVERS (by % change) China Unicom +2.1 CNOOC Ltd +1.9 China East Air +1.4 Aluminum Corp -3.5 APT Satellite -5.8 (US$1=HK$7.8)