Hong Kong shares rise on vaccine hopes, Sino-U.S. tensions cap gains

China State Construction International Holdings

11/12/2020 08:36

Dec 11 (Reuters) - Hong Kong stocks tracked other Asian
market higher as progress on COVID-19 vaccines boosted
sentiment, although gains were capped due to a flare up in
Sino-U.S. tensions. 
    
** The Hang Seng index  .HSI  rose 0.4 to end at 26,505.87,
while the China Enterprises Index  .HSCE  gained 0.4% to
10,452.50.   
    
** Asian markets were buoyed by optimism that imminent
vaccinations would fuel economic recovery. U.S. authorities
voted overwhelmingly to endorse emergency use of Pfizer's
coronavirus vaccine, while doses of a COVID-19 vaccine made by
China's Sinovac Biotech  SVA.O  are rolling off a Brazilian
production line.  urn:newsml:reuters.com:*:nL1N2IQ353  urn:newsml:reuters.com:*:nL1N2IQ10J
    
** But the Hong Kong market is clouded by signs of deterioration
in Sino-U.S. relationship as the U.S. Federal Communications
Commission (FCC) begun the process of revoking China Telecom's
authorization to operate in the United States.  urn:newsml:reuters.com:*:nL1N2IQ22N
    
** S&P Dow Jones Indices on Thursday became the second major
index provider to remove some Chinese companies from its index
products following a Trump administration executive order. FTSE
Russell made a similar move last week, while rival index
publisher MSCI is expected to follow suit.  urn:newsml:reuters.com:*:nL1N2IQ0J0
    
** Hong Kong-listed shares of the U.S.-blacklisted companies,
including CRRC  1766.HK , China Communications Construction Co
 1800.HK  and China State Constrution  3311.HK  all fell on
Friday.    

 (Reporting by the Shanghai Newsroom; Editing by Rashmi Aich)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))