April 23, 2018 / 4:28 AM / a month ago

China, Hong Kong stocks dip, tech firms under pressure

* SSEC -0.1 pct, CSI300 0.0 pct, HSI -0.4 pct

* HK->Shanghai Connect daily quota used 9.9 pct, Shanghai->HK daily quota used -2.7 pct

* FTSE China A50 +0.6 pct, BNY Mellon ADR China Select Index -0.1 pct

SHANGHAI, April 23 (Reuters) - China and Hong Kong stocks dipped lower on Monday, as tech firms faced pressure amid the ZTE ban, while investors found some solace on the geopolitical front. ** The CSI300 index was unchanged at 3,761.78 points at the end of the morning session, while the Shanghai Composite Index dipped 0.1 percent to 3,068.28. ** The Hang Seng index dropped 0.4 percent to 30,310.22 points, while the Hong Kong China Enterprises Index lost 0.2 percent to 12,033.22. ** All eyes were on China’s ZTE , which is seeking a resolution to a U.S. ban on selling it parts and software that it has said threatens its survival. ** A dozens of fund managers have already cut the valuations of ZTE shares by more than 20 percent, with some even flagging a 30 percent cut. ZTE stock is halted on the mainland and Hong Kong. ** The ZTE ban came at a time when China and the United States have threatened each other with tens of billions of dollars in tariffs in recent weeks, fanning worries of a full blown trade war that threatens global supply chains as well as business investment plans. ** Tech stocks were under pressure amid the ZTE woes, with an index tracking IT firms on the mainland, down more than 2 pct by the lunchbreak, while IT firms dropped 1.3 percent in Hong Kong. ** Leading tech firm BOE Technology plumbed a seven-month low despite clarifying sanctions reports. ** U.S. Treasury Secretary Steven Mnuchin said on Saturday he may travel to China, a move that could ease tensions between the world’s two largest economies, as international policymakers acknowledged Beijing needs to change its trade practices. ** However, investors found some solace on the geopolitical front, after North Korea said on Saturday it would immediately suspend nuclear and missile tests, scrap its nuclear test site and instead pursue economic growth and peace. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.29 percent while Japan’s Nikkei index was down 0.21 percent . ** The yuan was quoted at 6.2938 per U.S. dollar, 0.06 percent firmer than the previous close of 6.2976. ** As of 0407 GMT, China’s A-shares were trading at a premium of 22.32 percent over the Hong Kong-listed H-shares. ** The largest percentage gainers in the main Shanghai Composite index were Jilin Expressway Co Ltd up 10.12 percent, followed by China United Network Communications Ltd gaining 10.06 percent and Chengdu Haoneng Technology Co Ltd up by 10.01 percent. ** The largest percentage losses in the Shanghai index were Shanghai Wondertek Software Co Ltd down 10.01 percent, followed by Shanghai M&G Stationery Inc losing 9.97 percent and Ningbo Joyson Electronic Corp down by 9.79 percent. ** The top gainers among H-shares were Air China Ltd up 3.23 percent, followed by Guangzhou Automobile Group Co Ltd gaining 2.21 percent and Postal Savings Bank of China Co Ltd up by 1.74 percent. ** The three biggest H-shares percentage decliners were Huaneng Power International Inc which has fallen 2.64 percent, China Gas Holdings Ltd which has lost 2.1 percent and CSPC Pharmaceutical Group Ltd down by 2.0 percent.

Reporting by Luoyan Liu and John Ruwitch, Editing by Sherry Jacob-Phillips

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