Lower oil, China stocks to push HK shares higher

HONG KONG, July 28 (Reuters) - Hong Kong shares are set to rebound from the previous session's losses on Monday, supported by retreating crude oil prices and positive economic data from the U.S.

U.S. stocks rose on Friday as a drop in oil prices and stronger-than-expected data on consumer sentiment and housing blunted the latest concerns about the health of U.S banks.

Oil prices held below $124 per barrel after a $2 fall on Friday, extending a decline that has knocked more than $24 off crude in two weeks as high fuel prices continue to batter demand.

Locally-listed Chinese stocks should trend higher after China's central bank signalled monetary policy will focus more on maintaining economic growth than on curbing inflation.

"Declining oil prices are positive but gains on Wall Street were quite modest on Friday. We will see the bulls and beras tussle at the 23,000 level today," said Ben Kwong, COO with KGI Asia.

Hong Kong shares .HSI dropped 1.5 percent to 22,740.71 on Friday, as analysts predicted the end of a short-lived global rally after disappointing U.S. home sales data rekindled worries over the health of financial markets.

But the main index rose 4 percent last week, posting its best weekly gain in three months, rallying in line with a rebound in global financial stocks.

STOCKS TO WATCH-

*China Telecom (0728.HK) will lease a CDMA telecom network from its state-owned parent at a fee equal to 28 percent of its revenue each year from 2008-10, allowing the nation's top fixed-line provider to enter the lucrative mobile arena.

The telecom group (CHA.N) said in a statement on Monday the maximum lease fees payable for 2008, 2009 and 2010 are expected to be 4 billion yuan ($586.7 million), 20 billion yuan, and 35 billion yuan respectively.

* Yanzhou Coal Mining Co Ltd (1171.HK) said late on Friday its net profit for the first six months of 2008 was estimated to have risen over 220 percent according to Chinese accounting standards. The coal maker had previously estimated an over 100 percent growth in profits and attributed the better estimates to continued increase in coal prices in the second quarter of 2008. It posted a net profit of 1.11 billion yuan in the first half of 2007. For details please see here

* Great Wall Motor Co Ltd (2333.HK) said on Sunday the Shijiazhuang Intermediate People's Court in the mainland had dismissed a claim by Fiat Auto S.P.A. (FIA.MI) that Great Wall's GWPeri car model was an infringement of Fiat's patent, and ordered that the court fees in the amount of 8,800 yuan should be paid by Fiat. For the statement please see here

* China National Petroleum Corp, China's largest oil producer and parent of PetroChina (0857.HK) is considering bidding for a minority stake in two shale gas assets owned by U.S.-based Chesapeake Energy valued at about U$15 billion each, the South China Morning Post said citing market sources.

* COSCO Pacific is in talks to bring in a partner in its plan to take a 30 percent stake in Fuzhou Port, and the container terminal operator plans to join with Shenzhen port manager Yantian Port Group to complete the deal it announced last year, the South China Morning Post reported.

* -----------------MARKET SNAPSHOT @ 23:15 GMT --------------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1,257.76 0.42 5.220

USD/JPY JPY= 107.87 0.05 0.050

10-YR US TSY YLD US10YT=RR 4.111 -- 0.000

SPOT GOLD XAU= $928.65 -0.01 -0.050

US CRUDE CLc1 $123.23 -0.02 -0.030

DOW JONES .DJI 11370.69 0.19 21.41

ASIA ADRS .BKAS 145.19 -0.40 -0.58 ---------------------------------------------------------------- > SE Asian Stocks-Higher this week on oil, growth fears loom[.SO] > Wall St Wk Ahead: Jobs, oil earnings to call market tune [.N] > Oil hits seven-week low on faltering demand [O/R] > FOREX-Dollar gains vs yen on US housing, sentiment data [USD/] > TREASURIES-Bonds fall as economic data cuts safety bids [US/] > Gold ends higher as stocks pare gains, oil drops [GOL/]

(Reporting by Parvathy Ullatil; Editing by Jonathan Hopfner)