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Hong Kong shares seen lower, turnover expected low
April 5, 2012 / 1:11 AM / 5 years ago

Hong Kong shares seen lower, turnover expected low

HONG KONG, April 5 (Reuters) - Hong Kong shares could start
lower on Thursday, hit by dented hopes of more quantitative
easing in the United States and a weaker-than-expected Spanish
debt auction that renewed fears of the euro zone debt crisis.	
    Turnover is expected to stay low ahead of the Good Friday
public holiday when the key U.S. monthly employment report is
expected to be released. 	
    Financial markets were closed in Hong Kong on Wednesday,
while those in mainland China will be trading on Thursday for
the first time this week after a three-day public holiday.     	
    On Tuesday, the Hang Seng Index snapped a four-day
losing streak, rising 1.3 percent. The China Enterprises Index
 of the top mainland listings rose 1.9 percent.
 	
    Short selling interest accounted for 7.9 percent of total
turnover on Tuesday, the lowest since March 14. Bourse turnover
was relatively weak, but increased 40 percent from Monday.	
    Elsewhere in Asia, Japan's Nikkei was down 0.8
percent and South Korea's KOSPI was down 0.6 percent at
0051 GMT.  	
	
    FACTORS TO WATCH:	
    * China's premier called the country's big banks a monopoly
that needed to be broken to get money flowing to cash-starved
private firms, as the nation's economy appears to have skidded
to its slowest growth in three
years.  	
    * Mainland Chinese markets could see some support after
China said on Tuesday it will raise the total quota for its
qualified foreign institutional investor scheme (QFII), a main
channel for foreign investment in Chinese securities, by $50
billion to $80 billion, as the current programme nears its
limit. Strength in mainland markets could bolster Hong Kong
markets. 	
    * Hong Kong's billionaire Kwok brothers, whose arrest last
week on suspicion of corruption has gripped the financial hub,
said on Tuesday they had done nothing wrong and insisted it was
business as usual at Sun Hung Kai Properties, the
family conglomerate they jointly run. 	
    * China Petroleum & Chemical Corp (Sinopec) and
ENN Energy Ltd  said on Tuesday that they reserved the
right to revise the terms of their $2.2 billion takeover offer
for China Gas Holdings Ltd. 	
    * China Power New Energy Development Co has agreed
to invest 455 million yuan ($72.25 million) to buy 20 percent of
real estate and new energy firm Hainan Dalecheng Development
Holding Co. 	
    * Employees at UC RUSAL's Friguia alumina refinery
in Guinea have gone on strike, paralysing operations there, a
union member and two other employees told Reuters, but the
company said production losses would be
"insignificant". 	
            	
    MARKET SUMMARY:	
> Wall St down on stimulus doubts, Spain debt sale          	
> Euro drops to 3-wk low vs dlr as ECB, Fed contrast      	
> Treasuries gain as stock losses spur safety bid          	
> Gold falls to 3-month low, Fed easing hopes wanes       	
> Oil falls as U.S. stockpiles hit 9-month high            	
> Spain debt sale spurs yields, stir crisis fears      	
	
 (Reporting by Clement Tan and Alison Leung; Editing by XXX)

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