STOCKWATCH: Hong Kong H shares higher on optimism towards results

HONG KONG (AFX-ASIA) - H shares were higher in late morning trade on expectations more Chinese state enterprises will report satisfactory 2000 results during the current earnings report season, dealers said.	    At 12:07 pm, the Hang Seng China Enterprises index was up 7.43 points at 395.00, while the Hang Seng CAC index was up 12.23 points at 1,047.42.	    The Hang Seng Index was up 265.85 points at 12,973.75 on turnover of 3.68 bln hkd.	    An analyst with Core Pacific-Yamaichi International said the optimism is due to results already announced by state-owned companies, such as Huaneng Power and Shenyang Public Utility.	    Huaneng Power rose 0.05 to 3.775 and Shenyang Public Utility gained 0.10 to 1.45.	    "The satisfactory results came after these state-owned companies successfully restructured their businesses. As the economic reforms in China continue, investors have high hopes about improvements in profitability," the analyst said.	    The analyst said the market is expecting Chinese petroleum and petrochemical stocks will follow suit to announce good earnings results.	    "There is little doubt that China's largest oil company PetroChina will report high growth in its profit. I am also looking to good news from petrochemicals like Shanghai Petrochemical and Yizheng Chemical," the analyst said.	    PetroChina rose 0.01 to 1.37 and Sinopec gained 0.04 to 1.15.	    Shanghai Petrochemical added 0.01 to 0.91 and Yizheng Chemical grew 0.04 to 1.46.	    Despite the current optimism towards the H share sector, the analyst said further upside in share prices will depend on how U.S. equity markets perform.	    "Investors should stay cautious," the analyst said.	    Jilin Chemical gained 0.04 to 0.57 and Anhui Expressway rose 0.05 to 0.89. 

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