Company News

HK stocks end lower as U.S. ban ramps up pressure on China

* HK->Shanghai Connect daily quota used -5.3%, Shanghai->HK daily quota used 4.6%

* HSI -0.1%, HSCE -0.3%, CSI300 -1.1%

* FTSE China A50 -1.7%

Nov 13 (Reuters) - Hong Kong stocks ended the week higher, despite a slight easing on the day after Trump administration decided to ban U.S. investments in firms linked to the Chinese military, ramping up pressure on Beijing after the U.S. election.

** The Hang Seng index ended 0.1% lower at 26,156.86 on Friday, while the China Enterprises Index lost 0.3% to 10,545.27.

** U.S. President Donald Trump’s administration unveiled an executive order that is designed to deter U.S. investment firms, pension funds and others from buying shares of 31 Chinese companies that were designated by the Defense Department as backed by the Chinese military earlier this year.

** Though for the week, HSI gained 1.7% and HSCE added 0.5%. Markets had surged earlier in the week as investors welcomed Joe Biden’s win in the U.S. presidential election.

** While analysts expect little change in U.S. policy towards China whatever the outcome, a Biden administration is expected to bring a more nuanced, multilateral approach to trade and a less hawkish foreign policy toward developments in the Taiwan Strait.

** Tech players took a hit from China’s latest anti-trust guidelines, with the Hang Seng tech index losing 2.6% for the week.

** China this week published draft rules aimed at preventing monopolistic behaviour by internet platforms, a move that will increase scrutiny on e-commerce marketplaces and payment services.

** China’s main Shanghai Composite index closed down 0.86% at 3,310.10 points, while the blue-chip CSI300 index ended down 1.05%.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.18%, while Japan’s Nikkei index closed down 0.53%.

** The yuan was quoted at 6.6143 per U.S. dollar at 0828 GMT, 0.04% weaker than the previous close of 6.6115.

** At close, China’s A-shares were trading at a premium of 39.11% over Hong Kong-listed H-shares. (Reporting by the Shanghai Newsroom, Editing by Sherry Jacob-Phillips)