(Updates to close, details) 
    HONG KONG, Feb 11 (Reuters) - Hong Kong blue chips fell 
across the board on Monday, sliding 3.6 percent in their first 
trading day of the year of the Rat, as the market caught up with 
overseas losses during last week's holiday. 
    But trading was thin as China's stock market remained closed 
for the Lunar New Year holiday and concerns lingered over the 
health of the U.S. economy. 
    CNOOC <0883.HK> plunged 6.45 percent to lead the blue-chip 
losses, but Datang Power <0991.HK> gained 1.89 percent to HK$5.40 
on hopes it will benefit from the nation's power shortage. 
    The benchmark Hang Seng Index <.HSI> fell 853.35 points to 
22,616.11. The China Enterprises index of H shares <.HSCE>, or 
Hong Kong-listed shares in mainland companies, slid 4.11 percent 
at 12,530.60. 
    "Overseas markets are weak and the United States is facing a 
major slowdown," said Joseph Lau, a director at Tai Fook Asset 
Management. 
    "Hong Kong stocks are lacking clear direction."  
    Chinese oil and petrochemical stocks took a beating, with 
PetroChina <0857.HK> down 4.49 percent at HK$10.64 and Sinopec 
<0386.HK> easing 4.22 percent to HK$8.40. 
    Mainboard turnover was HK$76.43 billion ($9.80 billion), 
compared with Wednesday morning's HK$70.66 billion and Tuesday's 
HK$85.03 billion, the last full trading day before the holiday. 
    "Investors are making short-term trading with the Hang Seng 
Index testing its bottom," said Steve Cheng, associate director 
at Shenyin Wanguo. 
    He expected the blue chip index to move within 22,000 and 
25,000 points this month and in March. 
    "The market is waiting for the results of HSBC <0005.HK> to 
see how big the subprime bond impact will be on banks," he added. 
    Banks are due to report their 2007 earnings, with Bank of 
East Asia <0023.HK> set to take the lead on Friday. 
    Shares of Bank of East Asia slid 3.82 percent to HK$40.25. 
The bank said it would fully support David Li in continuing as 
chairman and chief executive of the bank.  
    Li, without admitting or denying liability, agreed to pay a 
civil penalty of US$8.1 million in relation to trading in shares 
in Dow Jones. For details please see 
http://www.hkexnews.hk/listedco/listconews/sehk/20080206/LTN20080206120.pdf 
    HSBC ended down 4.04 percent at HK$109.30. 
    Chinese banks also lost ground with Bank of Communications 
<3328.HK> falling 6.02 percent, China Construction Bank  
<0939.HK> easing 5.47 percent and Bank of China <3988.HK> 
dropping 4.43 percent. 
    Goldman Sachs cut its target prices for Chinese banks on 
Monday by 21 percent to 31 percent as relatively high inflation 
in China and credit market turmoil in the United States would 
likely persist in 2008, it said. 
    Shares of Denway Motors <0203.HK> fell 7.86 percent to 
HK$4.34 after a newspaper reported on Monday that its parent, 
Guangzhou Automotive Industry was eyeing a dual listing in 
mainland China and Hong Kong to raise a combined $1 billion. 
[ID:nHKG369955] 
    Shares of Chalco <2600.HK> fell 5.85 percent to HK$11.58. 
    Investors believed the firm's state-owned parent, Chinalco, 
was in no hurry to make a move to raise its stake in mining firm 
Rio Tinto <RIO.AX><RIO.L>, especially after Rio's chairman wrote 
to shareholders on Sunday urging them to take no action on a bid 
for the company by rival miner BHP Billiton <BHP.AX> <BLT.L>. 
[ID:nSYD19845] 
    Chinalco and its partner, U.S. aluminium giant Alcoa Inc 
<AA.N>, gate-crashed BHP's plan for a takeover of Rio with a $14 
billion purchase of a 9 percent stake in the company. 
 ($1=HK$7.8) 
 (Reporting by Alison Leung; editing by Anne Marie Roantree) 
 (([email protected] ; +852 2843 6369; Reuters Messaging: 
[email protected] )) 
    ASIA-PACIFIC STOCK MARKETS: 
 Pan-Asia........[STXNEWS/AS] Japan.......[.T]   S.Korea...[.KS] 
 S.E. Asia.......[.SO]        Hong Kong...[.HK]  Taiwan....[.TW] 
 Australia/NZ....[.AX]        India.......[.BO]  China.....[.SS] 
    OTHER MARKETS: 
 Wall Street ....[.N]        Gold .......[GOL/] Currency..[FRX/] 
 Eurostocks......[.EU]        Oil ........[O/R] JP bonds...[JP/] 
 ADR Report .....[ADR/]      LME metals.[MET/L] US bonds.. [US/] 
 Stocks News US..[STXNEWS/US] Stocks News Europe    [STXNEWS/EU] 
    DIARIES & DATA: 
 IPO diary & data  <HK/IPOMENU>  Asia earnings diary [ASIA/EQTY] 
 U.S. earnings diary  [RESF/US]  European diary       [WEU/EQTY] 
 Hong Kong diary     [HK/DIARY]  Wall Street Week Ahead   [.N/O] 
 Eurostocks Week Ahead  [.EU/O] 
    TOP NEWS: 
    For top Asian company news, double click on:       [nTOPEQA] 
 U.S. company news    [TOP/EQU]  European company news [TOP/EQE] 
 Forex news           [TOP/FRX]  Global Economy news [TOP/MACRO] 
 Tech/Telecoms/Media  [TOP/TMT]  Banking news          [TOP/FIN] 
 Politics/General news  [TOP/G]  Asia Macro data     <ASIATODAY> 
 A multimedia version of Reuters Top News is available at: 
 http://topnews.session.rservices.com 
    LIVE PRICES & DATA: 
 World Stocks          <0#.INDEX>  Currency rates  <EFX=> <NFX=> 
 Dow Jones/NASDAQ  <.DJI> <.IXIC>  Nikkei                <.N225> 
 FTSE 100                 <.FTSE>  Debt     <0#USBMK=> <EURIBOR> 
 Hong Kong currency        <HKD=>  LME price overview    <RING=> 
Keywords: MARKETS HONGKONG STOCKS