HK shares seen retreating after 3-day rally

HONG KONG, Jan 6 (Reuters) - Hong Kong shares are seen giving
up some of the gains made in their three-day, 9 percent rally on
Tuesday following a pullback on Wall Street overnight but higher
oil prices are expected to lift commodity-linked counters.

Blue chips including banking giant HSBC Holdings (0005.HK),
which saw its 2009 earnings estimate cut by 21 percent by
Deutsche Bank, are likely to lead the retreat on Tuesday as
earnings worries loom.

Crude oil prices held above $48 per barrel in Asian trade
after rising 5 percent overnight amid heightened geopolitical
tension.

The Hang Seng Index .HSI closed 3.5 percent higher at a
nearly four-week high of 15,563.31 on Monday as stocks across the
board surged on hopes of massive stimulus spending from China.

STOCKS TO WATCH-

* Franshion Properties (0817.HK) said it had completed the
purchase of Wise Pine, which indirectly owns, develops and
manages luxury hotels and upscale commercial properties at prime
locations in Shanghai, Shenzhen, Sanya and Beijing. For statement
please see
here

* China Railway Construction Corp (1186.HK) said it would buy
railway equipment, rail fastener and mechanism devices maker
Longchang Railway Materials Factory from its controlling
shareholder for 56.3 million yuan ($8.24 million). For statement
please see
here

* CNPC (Hong Kong) (0135.HK) said it was the successful
bidder in the open tender for a 44.76 percent stake in natural
gas stations operator Xinjiang Xinjie, which is currently owned
by PetroChina (0857.HK), for about 151 million yuan. For
statement please see
here

* Great Wall Motor (2333.HK) said the Hebei Province People's
High Court dismissed an appeal filed by Fiat which alleged its GW
Peri automobile model was an infringement of Fiat's patent. The
company said it did not anticipate the dispute would have any
immediate effects on its operation, business
or financial position. For statement please see
here

* Sichuan Expressway (0107.HK) said it would seek shareholder
approval in a shareholders meeting on Jan 23 for its plan to
issue 500 million A-shares in Shanghai, raising up to 2 billion
yuan for repayment of bank loans. For statement please see
here

* Chinese glucose producer Xiwang Sugar (2088.HK) said it
expected to record a sharp decline of more than 50 percent in net
profit in 2008 amid a deteriorating operating environment and a
drop in exports due to the global financial crisis. But it said a
sharp fall in late 2008 in the price of corn, a major raw
material of the firm, may improve its operating profit in 2009.
It also said it had suspended the purchase of an edible oil
producer in the uncertain operating environment. For statement
please see
here
----------------- MARKET SNAPSHOT @ 2339 GMT ------------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 927.45 -0.47% -4.350
USD/JPY JPY= 93.24 -0.22% -0.210
10-YR US TSY YLD US10YT=RR 2.476 -- 0.000
SPOT GOLD XAU= $854.45 -0.52% -4.450
US CRUDE CLc1 $46.52 4.30% 1.920
DOW JONES .DJI 8952.89 -0.91% -81.800
ASIA ADRS .BKAS 97.94 0.07% 0.07
---------------------------------------------------------------
> Wall Street slips on telecom, financials [.N]
> Oil rises 5 pct as geopolitical concerns mount [O/R]
> Dollar bolstered by Obama stimulus plan, ECB outlook [USD/]
> Longer bonds balk at looming issuance binge [US/]
> Gold leads precious metals slide on firmer dollar [GOL/]

(Reporting by Parvathy Ullatil; Editing by Jonathan
Hopfner)