HONG KONG NEWSPAPER HIGHLIGHTS - JAN 22, 2008.

HONG KONG, Jan 22 Asia Pulse - Highlights of today's newspapers:

SOUTH CHINA MORNING POST:

- Mainland banking giants are slipping deeper into the subprime morass. Their shares yesterday posted record declines on reports that losses tied to high-risk United States mortgages will be larger than expected.

- Shares in Air China dived 15.18 per cent to HK$8.38 in Hong Kong yesterday amid fears China Eastern Airlines Corp would not accept a proposal by Air China's parent China National Aviation Corp (Group) (CNAC) for a 30 per cent stake.

- China Petroleum and Chemical Corp (Sinopec), Asia's biggest oil refiner, missed its overall refining throughput target by 0.3 per cent last year despite widespread diesel shortages in the fourth quarter.

- Nine Dragons Paper (Holdings), the mainland's biggest maker of containerboards, will invest up to three billion yuan in production facilities for wood pulp and liquid paper boards, which will be in commercial operation in 2010, company chairman Cheung Yan said yesterday.

- Chuanghui Real Estate Consultancy, the mainland property agency that closed down all its outlets temporarily last week, has unveiled a plan to settle its debts of 20 million yuan within two months.

- Low interest rates and increasing inflation in Hong Kong have spurred the property market, prompting banks to offer a variety of mortgage products for homebuyers and short-term investors.

THE STANDARD:

- Bears seem to be lurking everywhere as investors globally continue to dump stocks in panic selling.

- Margin orders for the four current initial public offerings continue to wane, with brokerage houses saying investor sentiment for IPOs will not improve until the market revives.

- Hong Kong Broadband Network, a subsidiary of City Telecom (1137), announced it will provide free wireless internet access to public housing residents, starting today.

- Foreign direct investment in China last year increased by 13.8 percent to almost US$83 billion (HK$647.4 billion), according to data released by the Commerce Ministry yesterday.

- Gaming revenues in Macau rocketed to more than US$10 billion (HK$78 billion) last year, a rise of 46 percent, as the former Portuguese enclave continues to close in on the greater Las Vegas region.

- Despite dire predictions, Morgan Stanley believes China could still parry the effects of a possible US recession with external forces helping it ease economic overheating.

- The Hang Seng Index, which plunged 5.5 percent yesterday to 23,818 points, is now very close to the 250-day moving average - currently at 23,487.

ASIA PULSE 22-01 1116