Hong Kong stocks fall on Sino-U.S. tensions, virus worries

* HK->Shanghai Connect daily quota used -1.1%, Shanghai->HK daily quota used 5.3%

* HSI -1.8%, HSCE -2.2%, CSI300 -1.8%

* FTSE China A50 -2.5%

July 10 (Reuters) - Hong Kong stocks fell on Friday, tracking Chinese equities as a heated rally there ground to a halt after state funds announced stake cuts in companies and on signs of renewed Sino-U.S. tensions.

** Record-breaking rises in coronavirus cases across several U.S. states further dented sentiment, stoking concerns that lockdown measures may be re-imposed, derailing a nascent economic recovery.

** At the close of trade, the Hang Seng index was down 482.75 points, or 1.84%, at 25,727.41. The Hang Seng China Enterprises index fell 2.23% to 10,541.26.

** The energy subindex of the Hang Seng dropped 2.4%, while the IT sector fell 1.89%. The financial sector ended 2.02% lower and the property sector dipped 0.97%.

** Geely Automobile Holdings Ltd, up 3.9%, was the top gainer on the Hang Seng index, while the biggest decliner was China Life Insurance Co Ltd, which fell 6.7%.

** For the week, HSI gained 1.4%, while HSCE added 2.9%.

** People’s Insurance Co (Group) of China and three China-listed tech companies said their major state shareholders plan to reduce holdings.

** The move came after regulators cracked down on margin financing and as Chinese official media urged retail stock investors to be prudent.

** Meanwhile, reports emerged that the U.S. imposed sanctions on the highest ranking Chinese official yet targeted over alleged human rights abuses against the Uighur Muslim minority, a move likely to ratchet up tensions between Washington and Beijing.

** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.02%, while Japan’s Nikkei index closed down 1.06%.

** The yuan was quoted at 7.0074 per U.S. dollar at 0815 GMT, 0.21% weaker than the previous close of 6.9924.

** At close, China’s A-shares were trading at a premium of 32.99% over Hong Kong-listed H-shares. (Reporting by the Shanghai Newsroom; Editing by Devika Syamnath)