HONG KONG, Aug 25 (Reuters) - Hong Kong stocks may remain supported but with limited upside on Tuesday as market liquidity recedes even as some companies are expected to report robust interim earnings.
The market will also be watching U.S. housing data due out later in the day.
"The inflow of liquidity into Hong Kong has been falling, and this will affect blue chips and China-related stocks, but the short-term pressure will not be that significant," said Capital Securities (HK) research head Jaseper Tsang.
"Buying momentum and buyers' positions may ease, but investors are expecting more positive economic data which should make companies' profitability sustainable, and that should give support to the market in the coming months," he said.
The benchmark Hang Seng index is expected to trade between 20,300 and 20,750 points on Tuesday, after it finished up 336.92 points at 20,535.94 on Monday.
Hong Kong shares climbed 1.67 percent in the previous session, tracking gains on mainland and overseas markets, with refiners and Chinese finance stocks up after Sinopec and China Construction Bank reported strong earnings.
The China Enterprises Index, which represents top locally listed mainland Chinese stocks, closed 2.1 percent higher at 11,703.49.
STOCKS TO WATCH:
* Chalco, which posted its third consecutive quarterly loss on Monday due to weak demand and low prices of aluminium used in transport and packaging, said it expected prices to trend higher in the second half of 2009 as the global economy stabilises and demand rebounds. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090824/LTN20090824635.pdf
* Sinotruk said its profit attributable to shareholders dropped 39.8 percent year-on-year to 462 million yuan ($67.63 million) and its heavy duty truck sales volume fell 21.4 percent to 53,195 units as exports of finished trucks were hit by the global financial crisis. For story, click: http://www.hkexnews.hk/ listedco/listconews/sehk/20090824/LTN20090824619.pdf
* Jiangxi Copper, which posted a 58.8 percent fall in first half profit to 1.27 billion yuan, said copper prices were unlikely to experience any substantial falls as demand increases as the economy recovers. For story please click http://www.hkexnews.hk/listedco/listconews/sehk/20090824/LTN20090824610.pdf
* Beijing Capital Land said on Monday it had applied for a Shanghai listing via the issue of up to 1.4 billion new A-shares to help finance a total of 9.55 billion yuan ($1.40 billion) worth of projects. (Reporting by Nerilyn Tenorio; Editing by Jonathan Hopfner)