Hong Kong shares seen higher amid thin turnover

HONG KONG, Dec 29 - Hong Kong shares are expected to rise on Monday, with resources counters likely to get a boost from higher oil prices and a rally in other commodity prices, but volumes are likely to stay slender at the start of another truncated trading week.

Crude oil prices moved close to $40 per barrel in Asian trade on fears of supply disruptions after violence flared up between Israel and Hamas.

Shares in China Eastern Airlines <600115.SS> <0670.HK> will be in focus after a senior executive with the company confirmed the air carrier was seeking further government aid, in addition to a 3 billion yuan ($439 million) capital injection announced earlier this month.

China Eastern said on Thursday the share placement plan would be significantly adjusted and that its domestic A shares would be suspended from trade in Shanghai until Dec. 30. [ID:nSHA345430]

The benchmark Hang Seng Index <.HSI> slid for four consecutive sessions, ahead of the long Christmas weekend, to rest at 14,185.14, but brokers expect the index to claw its way back up to 15,000 points in this week's holiday-shortened trade.

STOCKS TO WATCH-

* CITIC Group has become the majority shareholder in CITIC Pacific <0267.HK>, holding 57.56 percent of the company, after it completed a conversion of convertible bonds into 1.45 billion shares of the Hong Kong-listed firm. For a statement, please see http://www.hkexnews.hk/listedco/listconews/sehk/20081224/LTN20081224328.pdf

* GOME Electrical Appliances <0493.HK>, the electronics retailer once dubbed China's "Best Buy", has suspended former chairman Huang Guangyu and his wife from their executive duties amid a police probe into the once high-flying tycoon's financial activities. Trading in GOME shares, halted since Nov. 24, will remain suspended until further notice. [ID:nHKG188047]

* China Construction Bank <0939.HK> said on Sunday Luo Zhefu had resigned as a director and vice president of the bank with effect from Dec 26. For a statement, please see http://www.hkexnews.hk/listedco/listconews/sehk/20081228/LTN20081228005.pdf

* Sinofert <0297.HK> said on Sunday its 18.49 percent-owned Qinghai Salt Lake Potash <000792.SZ> would merge with Qinghai Salt Lake Industry Group <000578.SZ>. Qinghai Salt Lake Potash will issue new shares in exchange for and cancellation of existing shares of Salt Lake Industry, a firm currently 22.74 percent-owned by Sinofert's controlling shareholder Sinochem Corporation. For details please see http://www.hkexnews.hk/listedco/listconews/sehk/20081228/LTN20081228003.pdf

* Greentown China Holdings Ltd <3900.HK> said on Sunday it had not invested in Pacific Holdings Inc <8902.T>, rejecting a media report that the Chinese property developer was buying a stake in the Japanese real estate fund. [ID:nHKG286684] ----------------------MARKET SNAPSHOT @ 2325 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 <.SPX> 872.8 0.54% 4.650 USD/JPY <JPY=> 90.59 -0.13% -0.120 10-YR US TSY YLD <US10YT=RR> 2.1335 -- 0.000 SPOT GOLD <XAU=> 876.5 1.12% 9.700 US CRUDE <CLc1> 38.74 2.73% 1.050 DOW JONES <.DJI> 8515.55 0.56% 47.07 ------------------------------------------------------------- > Wall St gains on energy stocks and GMAC [.N] > Dollar rises versus yen as Japanese data disappoint [USD/] > Bonds rise with safe-haven bid in quiet trade [US/] > Gold mostly steady, supported on weak dollar [GOL/] > Oil above $37 on UAE supply cut, thin trade [O/R]