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HK Hot Stocks-Qingling sinks on poor H1, downgrade

HONG KONG, Aug 29 (Reuters) - The following stock was on the move on the Hong Kong stock exchange on Thursday.

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HANG SENG INDEX DOWN 1.08 PCT AT 10,021 AT 0224 GMT

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**QINGLING SLIDES FURTHER ON WEAK H1 NET, MERRILL DOWNGRADE**

Chinese truck maker Qingling Motors down 6.59 percent at HK$0.85, extending sharp losses, after investment bank Merrill Lynch downgraded the stock to "reduce" from "neutral" following its worse-than-expected first-half earnings.

The stock had sunk 18 percent on Wednesday and is down about 27 percent so far this year.

The firm reported on Wednesday a 65 percent plunge to 59.42 million yuan (US$7.2 million) in its first-half net profit, as fierce competition took its toll, leading to the Merrill Lynch downgrade.

Merrill Lynch analyst Grace Mak told Reuters that she had also cut its 2002 net profit forecast for Qingling by 46 percent to 152 million yuan from 280 million yuan.

0221 GMT

(US$1=8.28 yuan)