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iShares China Large-Cap Message Board

  • spiceykit spiceykit Mar 12, 2008 9:49 PM Flag

    hong kong to close green??

    HK stocks seen lower, China Railway debut eyed

    HONG KONG, March 13 (Reuters) - Hong Kong stocks may ease on Thursday on concern that a credit bailout by global central banks will fail to give a sustained boost to financial markets, but infrastructure play China Railway Construction Corp <1186.HK> looks set to make a respectable debut.

    One broker said China Railway had traded as high as HK$12.50 in the grey market, versus its IPO price of HK$10.7.

    "It should do okay especially when the market doesn't have anything else to speculate on," said Steve Leung, director at UOB Kay Hian Holdings.

    China Railway, which made a weaker-than-expected debut in Shanghai on Monday, priced the Hong Kong portion of its IPO at the top of a range, raising a total of $5.4 billion, after drawing record demand [ID:nHKG188525]. The company's shares closed up 28 percent in Shanghai on their debut.

    Mainland infrastructure plays have been touted as among this year's best bets as China's demand for more and better roads and transport systems remains strong.

    As for the broad market, Leung said the benchmark Hang Seng Index <.HSI> may lose up to 200 points on the open but may close higher on the day if mainland stock markets stabilise.

    "There will be profit-taking after the U.S. closed lower. We want to see what the impact of the Fed plan will be and there will be speculation on the Fed rate cut."

    The U.S. central bank is set to begin its rate-setting meeting on Tuesday.

    The Hang Seng Index ended up nearly 2 percent at 23,422.76 on Wednesday. The China Enterprises Index of Hong Kong-listed mainland companies <.HSCE>, or H shares, finished up 2.3 percent at 12,877.35.

33.76+0.60(+1.81%)Jun 29 4:00 PMEDT