HONG KONG, Oct 25 (Reuters) - Hong Kong stocks are set to rise on Monday, tracking gains in Asian markets, as investors gear up for a slew of earnings reports from major Chinese companies through the week.
The Hang Seng Index <.HSI> fell 0.6 percent on Friday to 23,517.54, on its way to a 1 percent decline on the week that marked its first weekly drop since the end of August.
Mainland banks had been popular buys since mid-September as investors picked up market laggards, encouraged by robust lending and low valuations although a surprise rate rise in China was seen as an excuse to lock in some gains.
The "big four" Chinese banks are scheduled to report third-quarter earnings this week starting with Bank of China Ltd <3988.HK> and Agricultural Bank of China <1288.HK> on Wednesday.
On Monday, Aluminum Corp of China Ltd <2600.HK>, the world's top aluminium maker by market value, is set to report third-quarter results.
Also reporting results will be BYD Co Ltd <1211.HK>, the Chinese carmaker backed by U.S. billionaire Warren Buffett, which is battling rising competition.
Elsewhere in Asia, Japan's Nikkei <.N225> was slightly higher, up 0.1 percent, while South Korea's KOSPI <.KS11> was up 0.4 percent as of 0115 GMT.
STOCKS TO WATCH:
- Datang International Power Generation Co Ltd <0991.HK> said on Monday that its third-quarter profit was 766.72 million yuan ($115.2 million) in accordance with Chinese accounting standards, bringing profit for the fist nine months to 1.6 billion yuan. [ID:nTOE69O00Q]
- China Vanke <000002.SZ>, the country's top developer, reported on Sunday a 6.1 percent rise in net profit as higher sales of more affordable housing boosted earnings. [ID:nTOE69H06A]
- China's securities regulator has approved rights issue plans proposed by China Construction Bank <601939.SS><0939.HK> and Bank of China Ltd <3988.HK> <601988.SS>. [ID:nTOE69L09H]
- The former chief executive of Sands China Ltd <1928.HK> Steve Jacobs sued his former employers for breach of contract over his severance package and stock options potentially worth more than $10 million, the South China Morning Post reported on Saturday, citing a civil action filed in Las Vegas.
- Foxconn Technology Group, which counts Hon Hai Precision Industry Co Ltd <2317.TW> and Foxconn International Holdings Ltd <2038.HK> as its subsidiaries, will invest $2 billion in a new plant in Chengdu in western China, the city government said on Friday. [ID:nTOE69L08F]
- Consumer-focused China Resources Enterprise Ltd <0291.HK>
planned to open 1,000 Pacific Coffee shops in China over the long
term, a source close to the Chinese company said, competing with
Starbucks Corp
- Sinopec Corp <600028.SS><0386.HK> plans to increase gas supplies to end users while halting supplies to its Yanshan refinery near Beijing during the upcoming winter season. Separately, China National Offshore Oil Corp (CNOOC) plans to import 13 billion cubic metres (bcm) or 10 million tonnes of liquefied natural gas (LNG) this year. [nTOE69L06F]
- Sinopharm Group Co Ltd <1099.HK> said Shenzhen-listed Shenzhen Accord Pharmaceutical Co Ltd posted a 31.15 percent rise in July-September profit to 62.18 million yuan, bringing the net profit for the first nine months of 2010 to 183.8 million yuan, up 25.8 percent from a year ago period. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101024/LTN20101024009.pdf
- Beijing Capital International Airport <0694.HK> said it had no present intention or timetable regarding issue of A shares but is considering and has had preliminary talks in relation to possible subscription of new shares of the company. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101022/LTN20101022482.pdf
MARKET SUMMARY *Wall St posts third straight weekly gain [nN22201271] *30-yr Treasury gyrates on QE2 bets;TIPS look tip[nN22459352] *Dlr set to snap 5-wk losing run [nN22200990] *Oil up in thin trade on German data, dollar [nSGE69L08A] (Reporting by Vikram S Subhedar, Editing by Chris Lewis)