* HK->Shanghai Connect daily quota used 5%, Shanghai->HK daily quota used 30.7% * HSI +2.7%, HSCE +2.4%, CSI300 -1.5% * FTSE China A50 -1.2% Jan 19 (Reuters) - Hong Kong stocks closed at a 20-month high on Tuesday, helped by steady and robust demand from investors in mainland China for shares in the Asian financial hub. ** The Hang Seng index rose 2.7%, to 29,642.28, the highest closing level since May 3, 2019, while the China Enterprises Index gained 2.4%, to 11,734.33. ** Leading the gains, the Hang Seng tech index and the Hang Seng financials index both closed 2.8% higher. ** “It’s mainly because of the liquidity foam. The outperforming stocks are benefiting from southbound flows,” said Steven Leung, a Hong Kong-based executive director at UOB Kay Hian. ** He said the AH premium also makes Hong Kong equities attractive to mainland investors. ** At close, China’s A-shares were trading at a premium of 33.86% over Hong Kong-listed H-shares. ** Mainland investors purchased 26.1 billion yuan ($4.02 billion) worth of Hong Kong stocks on Tuesday via the Stock Connect linking mainland and Hong Kong, after spending a record HK$23 billion on Monday, according to HKEX and Refinitiv data. ** For the past two years, the Hong Kong stock market had been far underperforming the A-share market and U.S. stocks, and the southbound inflows now are expected to help a recovery in the valuations of Hong Kong stocks, Essence International noted. ** The brokerage expects easing Sino-U.S. tensions after President-elect Joe Biden takes office, noting he would mainly focus on combating the coronavirus outbreak in the United States and soothing domestic divisions. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.24%, while Japan’s Nikkei index closed up 1.39%. ** The yuan was quoted at 6.4879 per U.S. dollar at 08:16 GMT, 0.06% firmer than the previous close of 6.4921. ($1 = 6.4871 Chinese yuan renminbi) (Reporting by the Shanghai Newsroom; Editing by Shailesh Kuber)