* SSEC -0.4%, CSI300 -0.4%, HSI -0.2%
* HK->Shanghai Connect daily quota used 0.6%, Shanghai->HK
quota used 3.6%
* FTSE China A50 -0.3%
SHANGHAI, Dec 4 (Reuters) - China stocks fell on Friday,
weighed down by escalating Sino-U.S. trade tensions, but were
set for weekly gains on the back of data that pointed to a
recovery in the world's second-largest economy.
** The CSI300 index fell 0.4% to 5,038.18 points
at the end of the morning session, while the Shanghai Composite
Index lost 0.4% to 3,430.03 points.
** Leading the decline, the CSI300 financials index
dropped 1.8% by midday.
** 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
** 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.
** The CSI has gained 1.2% so far this week, while SSEC
added 0.6%, both posting their third weekly rise on upbeat data.
** 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.
** Besides recovery hopes, analysts said low valuations were
a key factor as investors shifted to stocks in traditional
** "Chinese mutual funds could turn more to financial and
other traditional players for now, which provide more safety
margin given their valuations," said Yan Kaiwen, an analyst with
China Fortune Securities.
** Yan said the U.S. blacklisting of SMIC and CNOOC could
have limited impact on the A-share market now.
** In Hong Kong, the Hang Seng index dropped 0.2%, to
26,686.54 points, while the Hong Kong China Enterprises Index
lost 0.1%, to 10,580.42.
(Reporting by Luoyan Liu and Andrew Galbraith; Editing by