May 21, 2020 / 8:47 AM / 12 days ago

Tech shares drag Hong Kong stocks lower on possible tightening of Huawei chip curb

* HK->Shanghai Connect daily quota used 5.2%, Shanghai->HK daily quota used 4%

* HSI -0.5%, HSCE -0.5%, CSI300 -0.5%

* FTSE China A50 -0.2%

May 21 (Reuters) - Hong Kong stocks slipped on Thursday, dragged down by technology shares, after U.S. officials said regulators were open to making changes to close a possible loophole in a new rule aimed at curbing global chip sales to Chinese firm Huawei Technologies.

** At the close of trade, the Hang Seng index was down 119.92 points or 0.49%, at 24,280.03. The Hang Seng China Enterprises index fell 0.48% to 9,850.07.

** The sub-index of the Hang Seng tracking energy shares dipped 0.7%, while the IT sector dipped 1.63%, the financial sector ended 0.04% higher and the property sector dipped 0.82%.

** The top gainer on the Hang Seng was China Mobile Ltd , which gained 3.22%, while the biggest loser was Shenzhou International Group Holdings Ltd, which fell 3.75%.

** Leading the decline, the Hang Seng IT index dropped 1.6%, with Semiconductor Manufacturing International Corp’s skidding 7%.

** A U.S. State Department official said the rule, which currently includes chips designed by Huawei and doesn’t cover shipments if they are sent directly to the company’s customers — will be watched by regulators and “certainly make any changes that we think are necessary.”

** Investors also awaited China’s parliamentary meeting, where Premier Li Keqiang is expected to make a state-of-the-nation style address and reiterate Beijing’s long-standing vow to keep the yuan stable.

** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.19%, while Japan’s Nikkei index closed down 0.21%.

** The yuan was quoted at 7.1004 per U.S. dollar at 0810 GMT, 0.1% weaker than the previous close of 7.093. (Reporting by the Shanghai Newsroom; Editing by Rashmi Aich)

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