HK shares seen lower on weak global cues

HONG KONG, Sept 4 (Reuters) - Hong Kong shares are expected to trade weaker on Thursday after U.S. listed shares in local blue-chips fell sharply overnight, but the main index is likely to move in a narrow range on lack of new triggers from U.S. or China.

American Depository Receipts in China Mobile (0941.HK: Quote, Profile, Research, Stock Buzz) (CHL.N: Quote, Profile, Research, Stock Buzz) fell 2.9 percent in New York on Wednesday while PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz) (PTR.N: Quote, Profile, Research, Stock Buzz) fell 3 percent.

"The market will not fall much today because we are sharply oversold after falling nearly 12,000 points from highs scaled in October 2007," said Alex Tang, research director with Core Pacific-Yamaichi International.

"But we are still dealing with many elements of uncertainty and the Hang Seng Index may drop below 20,000 this month before finding its bottom."

The S&P 500 and the Nasdaq fell on Wednesday as signs of increasingly sluggish growth in the United States and the rest of the world rattled investors already unsettled about the outlook for consumer spending and corporate profits. The Dow eked out a modest gain, however, helped by Home Depot (HD.N: Quote, Profile, Research, Stock Buzz) after its chief executive said the battered U.S. housing market's decline may be nearing an end.

Hong Kong shares fell 2.2 percent to close at a two-week low of 20,585.06 on Wednesday, with resources stocks dragged down by weaker oil prices, but China Huiyuan Juice (1886.HK: Quote, Profile, Research, Stock Buzz) soared on news of a $2.5 billion takeover by Coca-Cola.

FACTORS/STOCKS TO WATCH

* Beijing is planning a new value-added tax regime which will allow 8 million firms to use fixed asset investments to offset value-added tax payable to the government, which may help firms in struggling industries to save up to 150 billion yuan annually, said the South China Morning Post citing sources.

* The People's Bank of China is considering a move that will allow commercial banks to issue loans for mergers and acquisitions, according to a mainland media report.

* Franshion Properties (China) (0817.HK: Quote, Profile, Research, Stock Buzz) said on Wednesday it expected a substantial increase in its profit attributable to equity holders for the first of 2008 due to profit growth from sales and lease of Chemsunny Plaza and growth in the fair value gain of the investment properties. For statement, please see here 0903318.pdf ----------------------MARKET SNAPSHOT AT 2349 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1274.98 -0.2 -2.600 USD/JPY <JPY=> 108.3 0.06 0.060 10-YR US TSY YLD <US10YT=RR> 3.7083 -- 0.006 SPOT GOLD <XAU=> 803.4 0.39 3.150 US CRUDE CLc1 109.41 0.05 0.060 DOW JONES .DJI 11532.88 0.14 15.96 ASIA ADRS .BKAS 132.74 -0.87 -1.16 ------------------------------------------------------------- > SEA Stocks-Indonesia falls to week low as resources fall [.SO] > US STOCKS-Global growth worries rattle Wall St; Dow rises [.N] > Oil slips on soft demand, Gustav threat passes

[O/R] > FOREX-Dollar edges higher as euro zone data disappoint [USD/] > Bonds up on growth concerns, easing inflation worry [US/] > Gold trims loss on bargain hunting, physical sales [GOL/]

(Reporting by Parvathy Ullatil; Editing by Tomasz Janowski)