HK shares seen higher on China measures

HONG KONG, Dec 4 (Reuters) - Hong Kong shares are set to rise on Thursday, with investors likely to focus on financial stocks, after China said it planned to stabilise its stock market and ensure liquidity in the banking system.

China's cabinet has approved measures aimed at keeping the stock market steady, boosting bond issuance and increasing the supply of credit. [ID:nPEK83991]

Investors may also be encouraged by gains on Wall Street overnight, and early rises in Tokyo and Seoul on Thursday. "Hong Kong stocks will edge up a bit today, probably rising by 100 points," said Francis Lun, general manager at Fulbright Securities. "China is stepping up its efforts to boost its financial markets and that will be positive for Hong Kong."

The benchmark Hang Seng Index .HSI closed up 1.4 percent to 13,588.66 on Wednesday.

Investors, however, may remain cautious ahead of the release of November jobless data in the United States on Friday.

STOCKS TO WATCH:

* Cheung Kong (Holdings) (0001.HK) said late on Wednesday it would sell a 15 percent stake in a property development project in Tsuen Wan to Nan Fung Development Ltd in a deal valued at about HK$435.52 million. For statement please see here

* i-Cable Communications (1097.HK) said on Wednesday its controlling shareholder had decided not to proceed with a possible privatisation proposal. It gave no further details. Trading in the shares will resume on Thursday.

* Shaw Brothers (0080.HK) on Wednesday posted a profit attributable to equity holders of HK$115.5 million for the six months ended in September, down from HK$119.5 million a year earlier. It said contributions from its broadcasting unit, Television Broadcasts Ltd (0511.HK), only increased by 1 percent with cost of sales and overhead expenses rising 14 percent during the period. For statement please see here  Continued...