HONG KONG, July 8 Hong Kong shares could start
the week weaker on Monday, with high dividend stocks coming
under some pressure after U.S. Treasury bond yields ended last
week at near two-year highs after positive U.S. jobs data.
Investors will also be watching a slew of monthly economic
data from China. Beijing is due to post June loan growth and
money supply data from Monday, inflation on Tuesday and trade on
After markets in the mainland shut last Friday, China said
on Friday it would cut off credit to force consolidation in
industries plagued by overcapacity as it seeks to end the
economy's dependence on extravagant investment funded by cheap
In a statement from the State Council, or cabinet, Beijing
laid out broad plans to ensure banks support the kind of
economic rebalancing China's new leadership wants as it looks to
focus more on high-end manufacturing.
Last Friday, the Hang Seng Index rose 1.9 percent at
20,854.7 points, eking out a 0.2 percent gain last week. The
China Enterprises Index of the top Chinese listings in
Hong Kong rose 2.1 percent on Friday, but slid 1.1 percent on
Elsewhere in Asia, Japan's Nikkei was up 1.1
percent, while South Korea's KOSPI was down 0.1 percent
at 0108 GMT.
FACTORS TO WATCH:
* China's Finance Ministry has told central government
agencies to cut expenditures by 5 percent this year, a move the
official Xinhua news agency said was part of an austerity
campaign launched by the country's new leaders.
* Asia's biggest refiner Sinopec Corp
will export no diesel for a third month in July, and may also
skip shipments in August, industry sources with knowledge of the
matter said on Friday.
* Gold retailers such as Chow Tai Fook and Luk
Fook after China's May gold imports from Hong Kong
jumped more than a third from the previous month as lower prices
attracted buyers in the world's second biggest bullion consumer.