Hong Kong stocks end higher, but snap 4-week rally on Sino-U.S. tensions

Hong Kong stocks snapped four weeks of gains on Friday on Sino-U.S. tensions although a poll pointing to a recovery in China's economy helped them close higher for the day. ** The Hang Seng index rose 0.4% to 26,835.92 on Friday, while the China Enterprises Index gained 0.4% to 10,624.65.

Hong Kong stocks snapped four weeks of gains on Friday on Sino-U.S. tensions although a poll pointing to a recovery in China's economy helped them close higher for the day.

** The Hang Seng index rose 0.4% to 26,835.92 on Friday, while the China Enterprises Index gained 0.4% to 10,624.65. ** China's exports and imports are expected to rise at a faster pace in November, helped by strong demand and coronavirus-related disruptions at factories in other countries, a Reuters poll showed.

** Data on Monday showed China's factory activity expanded at the fastest pace in more than three years in November, while growth in the services sector also hit a multi-year high. ** For the week, HSI shed 0.2%, while HSCE lost 1.5%, both snapping a four-week winning streak.

** In the short-term, there is limited upside room for Hong Kong stocks due to rising Sino-U.S. tensions, KGI Securities said in a report. ** Energy firms slumped the most, with the Hang Seng energy index tumbling 12% in its worst week since March 13.

** The United States on Thursday added China's top chipmaker, SMIC, and oil giant CNOOC to a blacklist of alleged Chinese military companies, a move likely to escalate tensions with Beijing before President-elect Joe Biden takes office. ** CNOOC declined 3.9% on Friday, losing 21.7% for the week, while SMIC retreated 5.4% to log its fourth week of drop.

** That came after the U.S. House of Representatives passed a law to kick Chinese companies off U.S. stock exchanges if they do not fully comply with the country's auditing rules. ** Chinese state media warned that some damage to Sino-U.S. ties is "beyond repair" amid a new wave of counter-China measures by the Trump administration.