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HK Hot Stocks-CNAC down 4.7 pct on Cathay fears

HONG KONG, Jan 24 (Reuters) - The following stocks were on the move on the Hong Kong exchange on Friday.

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HANG SENG INDEX DOWN 1.3 PCT AT 9,460 AT 0738 GMT

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**CNAC DOWN ON FEARS OVER COMPETITION IN CHINA**

China National Aviation Corp (CNAC) down 4.7 percent to HK$1.43 as investors became increasingly nervous that Cathay Pacific Airways will win rights to resume flying to China, putting pressure on smaller Hong Kong airline Dragonair, which already serves many routes in China.

CNAC is Dragonair's biggest shareholder. A five-day hearing began on Thursday into Cathay's application to fly to China after a 12-year absence, with the carrier presenting what many analysts thought was a well argued case.

0744 GMT

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**LEGEND DROPS ON PROFIT-TAKING AHEAD OF RESULTS**

China's biggest computer maker Legend Holdings down 5.6 percent at HK$2.95 on profit-taking after rallying 15 percent in the past month. The stock has been buoyant this week after research group IDC said Legend was the biggest PC vendor in Asia in the fourth quarter of 2002 when its shipments surged 24.4 percent year-on-year.

However investors were moving to lock in profits as a safeguard against any disappointing news when Legend releases quarterly results next Wednesday. As PC prices have been falling, higher shipments might not necessarily translate into higher profit, analysts said. The stock is also looking pricey, trading at 21 times foreward earnings, compared to an average of about 16 times for Hong Kong blue chips.

0404 GMT

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**BYD STILL FALLING ON CAR MAKER ACQUISITION PLAN**

Chinese battery maker BYD Co Ltd down 13.15 percent to HK$12.55, adding to a near 20 percent plunge on Thursday as investors gave the thumbs down to the company's plans to enter China's highly competitive car sector.

BYD said on Thursday it would buy a state-owned Chinese car maker, Xian Zhen Chuan Automobile Ltd, to fit in with its strategy to produce rechargeable batteries for electric motor vehicles. But analysts were skeptical about the move, saying it was a risk for BYD to move away from its core business and that the battery maker did not necessarily have the management expertise to run a car company.

0258 GMT