Hong Kong shares may start steady, earnings in focus

HONG KONG Tue Aug 27, 2013 2:22am BST

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HONG KONG Aug 27 (Reuters) - Hong Kong shares could start steady on Tuesday, with the upside likely to be capped as investors await trading cues from earnings reports and policy indications in China.

On Monday, the Hang Seng Index closed up 0.7 percent at 22,005.32 points and the China Enterprises Index of the top Chinese listings in Hong Kong rose 1.4 percent. Both had their biggest daily percentage gains since Aug. 13.

Elsewhere in Asia, Japan's Nikkei was down 0.4 percent and South Korea's KOSPI was down 0.1 percent at 0055 GMT.

FACTORS TO WATCH:

* Chinese gold miner Zhaojin Mining Industry Co Ltd posted a 23 percent rise in first-half net profit to 2.37 billion yuan.

* A consortium of Chinese investors, comprising China Metallurgical Group and Jiangxi Copper, has demanded a review of a landmark $3 billion deal to produce copper in Afghanistan, the Ministry of Mines said on Monday, putting at risk one of Kabul's greatest hopes for economic independence.

* Shanghai Fosun Pharmaceutical (Group) Co Ltd , a pharmaceutical unit of China's Fosun International Ltd, said its first-half net profit jumped 50 percent to 1.1 billion yuan.

* Chinese steel prices are likely to weaken in the second half as supply continues to outstrip demand, a senior executive with Baoshan Iron & Steel, the country's biggest listed steelmaker by market value, said on Monday.

* Poly Real Estate Group Co Ltd said its first-half net profit rose 36 percent to 3.4 billion yuan.

* China Construction Bank's chief risk officer Zeng Jianhua said on Monday that the central bank is currently seeking industry input on a plan to allow commercial banks to issue certificates of deposit.

* China Southern Airlines Co Ltd , the country's largest carrier by fleet size, said its first-half net profit fell 19 percent to 344 million yuan.

* MTR Corporation Ltd, a Hong Kong subway operator, said its first-half net profit rose 6.4 percent to HK$6.2 billion.

* Evergrande Real Estate Group Ltd, a Chinese property developer, said its first-half profit rose 10 percent to 6.2 billion yuan.

* China Shenhua Energy , the country's largest coal producer, plans to buy a massive coal chemical project from its parent, Chairman Zhang Xiwu said on Monday.

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