HONG KONG, July 9 (Reuters) - Hong Kong shares are set to drop for a fourth consecutive session on Thursday on mounting concern Beijing may tighten monetary policies following a record surge in new lending on the mainland in the first half.
Chinese banks made new loans totalling 1.53 trillion yuan ($223.9 billion) in June, the People's Bank of China said on Wednesday. The figure was much higher than the estimate of 1.2 trillion yuan given by state media and dwarfed May's total of 664.5 billion yuan.
For the first half of the year, banks extended 7.37 trillion yuan in new loans, well above the minimum target of 5 trillion yuan set by the government for the year.
Senior regulators have in recent days warned of the risk posed to the banking sector from massive infrastructure lending this year.
Energy stocks are seen extending losses as oil dropped over 4 percent to under $61 per barrel after a U.S. government report showed that distillate stocks had risen near a 25-year high, reinforcing worries about a potential economic rebound. The benchmark Hang Seng Index dropped 0.8 percent to 17,721.07 in a third straight losing session on Wednesday.
STOCKS TO WATCH-
* Packaging paperboard producer Nine Dragons Paper (Holdings) Ltd on Thursday said it offered to purchase in cash all of its outstanding US$118.6 million, 7.875 percent senior notes due 2013. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090709/LTN20090709021.pdf
* Information technology services provider VST Holdings on Thursady said it would seek shareholder approval on its plan to spinoff ECS ICT Bhd for a separate listing on the main board of Bursa Malaysia Securities Bhd in a deal worth about HK$87 million before listing expenses. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090709/LTN20090709014.pdf
* Greentown China late on Wednesday said it would team up with Chinese partners Xiangsheng Real Estate and Zhongyi Group to set up a 60 percent owned joint venture to develop two plots of land in Cixi City, Zhejiang province, into residential and commercial property with total investment costs of about 2 billion yuan. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090709/LTN20090709005.pdf
* Shougang Concord said it would buy a 9.8 percent stake in Fushan International, a coking coal mining and products distributor, from major shareholder Shougang Holding for HK$1.93 billion -- HK$1.35 billion to be paid in cash and the remainder to be settled by an issue of new shares. Trading in the shares will resume on Thursday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090708/LTN20090708561.pdf
* CNNC International said it planmed to sell 50 million new shares at HK$8.78 each, a 17.8 percent discount, in a share placement, to raise HK$439 million to fund future business development and for working capital. Trading in the shares will resume on Thursday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090708/LTN20090708559.pdf
* Green Global Resources said it would buy a stake in a resources company that holds an exploration licence for an iron mine in Dundgobi, southwest of the Mongolian capital Ulaan Baatar, for HK$1.76 billion, a deal to be settled by issue of new shares, convertible preference shares, and promissory notes. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090708/LTN20090708555.pdf
* GOME Electrical said its special action committee was dissolved on July 7 after the committe completed its mandate of conducting an internal control review and financial review. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090708/LTN20090708543.pdf
* North Mining said it would buy a 65 percent stake in Jiu Long Kuang Ye, a company that holds exploitation rights and exploration rights for molybdenum mines located in Shanxi province, for HK$796.3 million. The deal will be settled by an issue of new shares at HK$0.60 each. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090708/LTN20090708447.pdf ----------------------MARKET SNAPSHOT @ 2243 GMT ------------
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