Hong Kong shares may open higher Thursday after a two-day break, as investors including Chinese fund managers and insurers may find some stocks as good bargains after recent falls.

Hong Kong's declining interest rates and surging inflation may also encourage investors to buy stocks instead of locking their money in deposits.

Stocks to watch include Cathay Pacific Airways, China Petroleum and Chemical Corp (Sinopec), airlines and telecommunications companies.

Cathay Pacific, Hong Kong's biggest airline, will be raising by at least 5 percent the salaries of its 11,400 staff in the city, the Standard reported Thursday.

The airline has also been charged by the European Union for price-fixing its fuel surcharges on its air-freight operations.

Sinopec, Asia's biggest oil refiner, plans to complete the construction of its Qingdao refinery in eastern China's Shandong province by end of next month. The new refinery has an annual capacity of 10 million tons. The company earlier said it plans to sell 25 percent of the Qingdao refinery to Saudi Aramco.

China Southern Airlines, the nation's largest carrier, and other carriers may be in the spotlight after China's Ministry of Finance announced that Beijing will import tariff on gasoline, diesel and jet fuel to one percent from 2 - 6 percent beginning January 1.

China Mobile, Asia's biggest mobile company, and other cellular phone operators, may also gain on reports that China's State Council, or cabinet, has said that the nation's third generation wireless mobiles or 3G are now ready for commercialization. China is expected to start issuing 3G licenses by middle of next year, in time for the Olympics in Beijing.