Hong Kong's benchmark share index is tipped to break through stubborn resistance at 14,000 this week, with a slew of earnings from blue chips, especially HSBC, expected to provide some impetus.
Investors have been buying into equities for months on hopes that companies would deliver bumper results amid reviving global and local economies.
Many firms that reported their earnings this season, including Bank of East Asia Ltd and bourse operator Hong Kong Stock Exchange, have impressed investors with forecast-beating results.
The Hang Seng Index firmed 0.28 percent last week to 13,907.03 points, taking gains to nearly 11 percent this year.
Joining HSBC to unveil their full-year report cards this week are some of Hong Kong's best known firms, including rail operator MTR Corp and fixed-line operator PCCW Ltd.
HSBC, the world's second most valuable bank, is expected to post on Monday a 48 percent jump in second-half profit to US $6.79 billion, fuelled by the acquisition of US consumer finance company Household International, according to a Reuters poll.
Its local unit Hang Seng, Hong Kong's third-largest lender, is expected to announce on the same day a four percent rise in second-half net profit to HK $4.94 billion (US $633 million) as business picked up swiftly after the Sars outbreak.
A fast-reviving property market, one of the city's core economic pillars, has helped a recovery in the financial sector. Local newspapers reported on Sunday that all 80 units from one property project were snapped up by homebuyers over the weekend.
CHINA ORIENTAL: Newcomer steel maker China Oriental Group Co, which raised about $247 million from an initial public offering, would be watched for signs of whether an IPO frenzy for mainland stock seen late last year can be sustained.
Fund raisings are expected to stay strong, with an estimated US $15 billion of overseas listings expected this year from China.
Investors would keep an eye on China-backed conglomerate Shanghai Industrial Holdings, which said on Friday it has suspended a senior executive at a tobacco unit for suspected involvement in cigarette smuggling.
Trading in the firm's shares were suspended on Friday but is expected to resume on Monday.
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