HONG KONG, June 16 (Reuters) - Hong Kong shares are seen extending the prevous session's losses on Tuesday after weak regional manufacturing data knocked down U.S. shares, while resource-linked counters will take a hit from falling commodity prices.
U.S. stocks tumbled on Monday, marking their worst slide in a month, after the New York Federal Reserve's Empire State general business conditions index showed the factory sector shrank at a much more severe rate in June than the previous month.
Crude oil extended declines for a third day towards $70 per barrel on Tuesday, after a 2 percent fall a day earlier, hurt by a stronger dollar and a fall in Wall Street and Asian shares.
The benchmark Hang Seng Index shed 2.1 percent in thin turnover on Monday to snap a three-session winning streak.
Analysts expect the index to drop to 18,000 points in the near term after its brush with the 19,000-point level last week.
STOCKS TO WATCH-
* Tianjin Port Development Holdings on Monday said it would sell up to 1.45 billion shares to third-party investors raising capital to fund its HK$10.96 billion purchase for control of Shanghai-listed rival Tianjin Port Co Ltd. The purchase is to be settled by an issue of HK$7.03 billion worth of Tianjin Port shares, HK$400 million in cash, and HK$1.7 billion in bank borrowings. The remainder would be settled by proceeds from the share placement, it said, but gave no further details. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090615/LTN20090615466.pdf
* Base metals trader APAC Resources said it would sell 900 million new shares to independent investors at HK$0.50 each, raising HK$440.5 million to reduce borrowings and for use as working capital. The issue price represented a 12.28 percent discount to the closing price of HK$0.57 on Monday.
* China Eastern Airlines late on Monday said its chairman, Liu Shaoyong, was leading a group to restructure China Eastern and Shanghai Airlines Corp, and that restructuring discussions were ongoing. Trading in the shares will remain suspended pending a further statement. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090615/LTN20090615444.pdf
* Sinolink Worldwide said it planned to issue HK$500 million in three-year zero-coupon bonds convertible into company sharers at HK$1.10 per share, raising funds for future investment and for working capital. Trading in the shares will resume on Tuesday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090615/LTN20090615316.pdf
* High-growth business investor Vongroup said it would take
20 to 30 percent stake in Tecroad Energy, a manufacturer of
lithium-ion batteries for use in electric vehicles, for up to
HK$150 million and has an option to buy up to 60 percent of the
Chinese battery maker within nine months.
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