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

Shenzhou International group

21/05/2020 09:44

* 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  .HSI  was
down 119.92 points or 0.49%, at 24,280.03. The Hang Seng China
Enterprises index  .HSCE  fell 0.48% to 9,850.07.
    ** The sub-index of the Hang Seng tracking energy shares
 .HSCIE  dipped 0.7%, while the IT sector  .HSCIIT  dipped
1.63%, the financial sector  .HSNF  ended 0.04% higher and the
property sector dipped 0.82%.
    ** The top gainer on the Hang Seng was China Mobile Ltd
 0941.HK , which gained 3.22%, while the biggest loser was
Shenzhou International Group Holdings Ltd  2313.HK , which fell
3.75%. 
    ** Leading the decline, the Hang Seng IT index  .HSCIIT 
dropped 1.6%, with Semiconductor Manufacturing International
Corp's  0981.HK  skidding 7%. 
    ** A U.S. State Department official said the rule, which
currently includes chips designed by Huawei  HWT.UL  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."  urn:newsml:reuters.com:*:nL1N2D229E  
    ** 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.  urn:newsml:reuters.com:*:nL4N2D21Q9 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.19%, while Japan's Nikkei index
 .N225  closed down 0.21%.
    ** The yuan  CNY=CFXS  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)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))