Hong Kong stocks end higher, but snap 4-week rally on Sino-U.S. tensions

  • 12/4/2020
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* HK->Shanghai Connect daily quota used 7.1%, Shanghai->HK daily quota used 6.6% * HSI +0.4%, HSCE +0.4%, CSI300 +0.2% * FTSE China A50 +0.3% Dec 4 (Reuters) - Hong Kong stocks snapped four weeks of gains on Friday on Sino-U.S. tensions although a poll pointing to a recovery in China’s economy helped them close higher for the day. ** The Hang Seng index rose 0.4% to 26,835.92 on Friday, while the China Enterprises Index gained 0.4% to 10,624.65. ** China’s exports and imports are expected to rise at a faster pace in November, helped by strong demand and coronavirus-related disruptions at factories in other countries, a Reuters poll showed. ** Data on Monday showed China’s factory activity expanded at the fastest pace in more than three years in November, while growth in the services sector also hit a multi-year high. ** For the week, HSI shed 0.2%, while HSCE lost 1.5%, both snapping a four-week winning streak. ** In the short-term, there is limited upside room for Hong Kong stocks due to rising Sino-U.S. tensions, KGI Securities said in a report. ** Energy firms slumped the most, with the Hang Seng energy index tumbling 12% in its worst week since March 13. ** The United States on Thursday added China’s top chipmaker, SMIC, and oil giant CNOOC to a blacklist of alleged Chinese military companies, a move likely to escalate tensions with Beijing before President-elect Joe Biden takes office. ** CNOOC declined 3.9% on Friday, losing 21.7% for the week, while SMIC retreated 5.4% to log its fourth week of drop. ** That came after the U.S. House of Representatives passed a law to kick Chinese companies off U.S. stock exchanges if they do not fully comply with the country’s auditing rules. ** Chinese state media warned that some damage to Sino-U.S. ties is “beyond repair” amid a new wave of counter-China measures by the Trump administration. (Reporting by the Shanghai Newsroom)

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