Hong Kong shares -- 2 (Hang Seng Index to remain volatile in near term)

At 11:11 am, the Hang Seng Index was up 493.25 points at 12,569.25, on trade of 3.32 bln hkd. 	    Peter Lai, associate director of OCBC Securities, said the Hang Seng Index will be volatile in the near term, driven by the unstable performance on Wall Street.	    "Wall Street is very volatile and yesterday's rebound was triggered by the positive earnings news from Dell ... the markets in Hong Kong and the U.S. will be sentiment-driven," he said.	    He said red-chips and H-shares followed the broader market rebound, with additional support from easing China-U.S. tensions.	    "Red-chips and H-shares are likely to outperform the broader market, once the political tension between China and the U.S. is cleared," he said.	    Among red-chips and H-shares, Tianjin Capital was up 0.16 at 1.55, Chongqing Iron rose 0.08 to 0.81, and Harbin Power gained 0.06 to 0.64.	    Onfem Holdings was up 0.03 at 0.38, Founder was 0.08 higher at 1.65, and Zhu Kuan Development was up 0.03 at 0.40.	    On the GEM board, tom.com was up 0.05 at 2.125, hongkong.com rose 0.01 to 0.28, and Sunevision added 0.025 to 2.125.	    Elsewhere, RNA was up 0.036 at 0.187, Tem Fat Hing Fung rose 0.004 to 0.056, and Can Do fell 0.011 to 0.182. The two companies were involved in a share transaction with Cheung Kong. 	    Cheung Kong was up 1.75 at 82.25.	    Cheung Kong is proposing to buy property and preference shares in Can Do, offsetting the 420 mln hkd owed by Can Do. Afterwards, Cheung Kong will transfer the preference shares in Can Do to both RNA Holdings and Tem Fat Hing Fung in exchange for shares in the companies. 

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