Hong Kong shares set for flat open or slight rise

HONG KONG, Oct 9 (Reuters) - Hong Kong shares were set for aflat to slightly higher open on Tuesday with investors focusedon China's domestic markets for direction, after theInternational Monetary Fund said China's growth was expected toweaken to 7.8 percent this year.

The Hang Seng index snapped a five-day rise on Mondayas sentiment was dented by mainland markets turning lower aftera week-long holiday. The Hang Seng closed down 0.9 percent whilethe China Enterprises index of top locally listedmainland firms fell 1.3 percent.

Elsewhere in Asia, Japan's Nikkei was down 0.4percent while South Korea's Kospi was up 0.1 percent asof 0040 GMT.


* ZTE Corp , targeted in a draft U.S. Congressreport as a potential security threat, could once again see itsshares under pressure as expansion plans are put on hold.

* Dutch bank and insurance group ING said on Mondayit has agreed to sell its 33.3 percent stake in Chineseinvestment management firm China Merchants Fund for 98 millioneuros ($128 million) to the two other joint venture partners,China Merchants Bank Co Ltd and ChinaMerchants Securities Co Ltd .

* Hutchison 3G, a unit of Hutchison Whampoa , willseek to convince doubting EU regulators of the merits of its1.3-billion-euro ($1.70 billion) bid for France Telecom's

Orange Austria subsidiary at a private hearing onWednesday, a person familiar with the matter said on Monday.

* Department store operator Lifestyle International HoldingsLtd said on Tuesday it is exploring the possibility ofa separate listing for its Hong Kong and China propertybusinesses on the Hong Kong stock exchange.

* Sinopec Corp's Qilu refinery is closing onMonday a 160,000 barrels-per-day crude unit for a planned 25-daymaintenance, an industry official said.

(Reporting by Vikram Subhedar and Donny Kwok)

((vikram.subhedar@thomsonreuters.com)(+852 28436975))