HONG KONG, Aug 3 (Reuters) -Hong Kong shares are seen drifting on Monday following a week of strong gains, as key corporate earnings begin to trickle in this week.
Europe's largest lender HSBC Holdings and its local unit Hang Seng Bank will kick off the interim earnings season for banks on Monday.
HSBC, which in March went to the market with a massive cash call, is expected to report a sharp drop in first-half profit or even record a loss for the preiod on the back of bad loans at its U.S. unit.
Companies continued to flag sharp declines in bottom lines for the quarter, with the latest being China Shipping Container Lines Co Ltd, which said on Friday that it expected to see a loss in the first half of 2009 because there had been no obvious improvement in market demand for international container shipping.
It posted a profit of about 699 million yuan ($102.3 million) for the first half of 2008 in accordance with Chinese accounting standards.
The benchmark Hang Seng Index extended its rebound on Friday after a sharp drop mid-week, to rise 1.7 percent, ending its fifth straight month of gains on a strong note.
Wall Street investors were measured in their reaction to better-than-expected economic data as a report showed U.S. consumer reined in spending during the second quarter
STOCKS TO WATCH-
* China Railway Group Ltd said on Sunday it would consider a US$7.5 billion contract as contractor for a railway design and construction project in Venezuela.
* China National Resources Development Holdings Ltd said late on Friday that it was in negotiations with the government of Xinjiang Ili Kazakh Autonomous Prefecture to sign a strategic cooperation framework agreement related to the consolidation and development of nonferrous metals resources in the prefecture. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090731/LTN20090731708.pdf
* China Construction Bank Corp said last Friday that it had appointed Chen Zuofu as executive director. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090731/LTN20090731487.pdf
* China Southern Airlines said it would sell six Airbus A300-600R aircraft and five Pratt & Whitney Model PW4158-3 Turbofan Spare Engines and spare parts for about US$125 million. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090731/LTN20090731408.pdf
* China Resources Land said late on Friday that it would buy sites in Shenyang, Beijing and Fuzhou for HK$3.57 billion. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090731/LTN20090731400.pdf ----------------------MARKET SNAPSHOT @ 2242 GMT ------------
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S&P 500 <.SPX> 987.48 0.07% 0.730
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