HONG KONG, June 18 (Reuters) - Hong Kong shares may remain weak after a three-session fall with no support expected from Wall Street, which ended mixed on the reduction of credit ratings and outlook for 22 U.S. banks, and U.S. financial regulation reform plans.
Concern over the spread of the H1N1 influenza virus could also weigh on sentiment as the city confirmed more than 50 new cases on Wednesday.
Banks will continue to sag under pressure, although mainland Chinese banks are expected to remain firm.
"Overseas markets fell, and the flu threat is unstoppable, so I don't see any support for the local market for now," said Fulbright Securities general manager Francis Lum.
He said the index could drop below the 18,000-point level in Thursday's trade.
The benchmark Hang Seng Index fell 80.90 points or 0.5 percent to close at 18,084.60 on Wednesday.
STOCKS TO WATCH:
* China Eastern Airlines on late Wednesday said it would buy 20 A320 aircraft from Airbus with a total list price of 9.92 billion yuan ($1.45 billion). For story please click http://www.hkexnews.hk/listedco/ listconews/sehk/20090617/LTN20090617452.pdf
* Jiangxi Copper on Wednesday said repair work for its Guixi smelter, which has an annual production capacity of 900,000 tonnes of copper cathode, had been completed. The company said it expected to produce 800,000 tonnes copper cathode in 2009. It gave no further details. For statement, click http://www.hkexnews.hk/listedco/listconews/ sehk/20090617/LTN20090617353.pdf
* Chaoda Modern Agriculture on Thursday said it planned to sell up to 388 million shares, or 12.8 percent of its enlarged share capital, to professional and institutional investors at HK$4.60 each. The sale is aimed at raising HK$1.78 billion (US$228 million) for repayment of an outstanding principal amount of its 7.75 percent guaranteed senior notes upon maturity on February 8, 2010, and for general working capital.
Trading in the shares will resume on Thursday. http://www.hkexnews.hk/listedco/listconews/sehk/20090618/LTN20090618012.pdf
* Sinotrans Ltd on Thursday said it would set up a 15 percent owned joint venture with its parent company and other partners with a registered capital of 500 million yuan, for the provision of financial services and finance consultancy services, and credit verification to companies of its parent. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090618/LTN20090618019.pdf
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INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 910.71 -0.14% -1.260
USD/JPY
MARKETS SUMMARY *Oil rises on stock market, US inventory data [nSP290171] *Nasdaq advances with tech, but banks curb Dow, S&P [nN17291955] *Treasury bonds pare gains as stocks march higher [nN17479686] *Dollar drops as tame inflation dents rate hike view [nN17353083 (Reporting by Nerilyn Tenorio; Editing by Chris Lewis)