Hong Kong Shares May Start Weaker Ahead Of China Flash PMI

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Hong Kong shares could start weaker on Thursday, tracking Wall Street losses and ahead of the HSBC China flash purchasing managers' index for May that could offer fresh clues on the world's second-largest economy.

A visitor walks near the logo of the Tokyo Stock Exchange in Tokyo

Hong Kong shares could start weaker on Thursday, tracking Wall Street losses and ahead of the HSBC China flash purchasing managers' index for May that could offer fresh clues on the world's second-largest economy.

Lenovo is due to post quarterly earnings later in the day, while Sinopec Engineering is due to make its listing debut after gaining as much as 8.6 percent in gray market trading on Wednesday

On Wednesday, the Hang Seng Index closed down 0.5 percent at 23,261.08 points, its second loss after ending Monday at its highest since early February. The China Enterprises Index of the top Chinese listings in Hong Kong slipped 0.3 percent.

Elsewhere in Asia, Japan's Nikkei was up 1.6 percent, while South Korea's KOSPI was down 0.7 percent at 0050 GMT.

FACTORS TO WATCH:

* Profit growth at China's state-owned companies cooled in the first four months of the year, government data showed on Wednesday, underscoring a faltering recovery in the world's second-biggest economy.

* The sovereign wealth funds of Qatar, Norway and Azerbaijan and China's Construction Bank have bought about 55 percent of the new shares issued by Russia's second-largest lender VTB, the bank said on Wednesday. VTB said it has completed its planned 102.5 billion roubles ($3.3 billion) offering of new shares at 4.1 kopecks each.

* Central China Real Estate Ltd said it would issue $400 million 6.5 percent senior notes due 2018, raising proceeds to redeem 2010 notes and to fund property projects.

* PanAsialum Holdings Co Ltd said it would invest 1.8 billion yuan in the next few years to establish an aluminium alloy production base for electronics products in Southwest Airport Economic Development Zone in Chengdu.

* China Properties Group Ltd said it planned to issue U.S. dollar denominated senior notes to fund expansion and for refinancing. BofA Merrill Lynch is the sole bookrunner for the issue.

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