SHANGHAI, Dec 11 (Reuters) - China's benchmark share index
is poised to post its biggest weekly loss in five months, as a
flare-up in Sino-U.S. tensions and worries about policy
tightening dented risk appetite.
** Hong Kong stocks tracked Asian markets higher as progress in
COVID-19 vaccines boosted investor sentiment.
** The blue-chip CSI300 Index dropped 1.3% to 4,875.26
points, on track to fall more than 3.7% for the week - the
biggest weekly decline since July. The Shanghai stock market
** In Hong Kong, the Hang Seng index added 0.3% to
26,485.23 points, while the Hong Kong China Enterprises Index
gained 0.1% to 10,421.90.
** 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, in
the latest market disruption from persistent Sino-U.S. tensions.
** FTSE Russell made a similar move last week, while rival index
publisher MSCI is expected to follow suit.
** Shares of the 10 U.S.-blacklisted companies, including
Hangzhou Hikvision Digital Technology Co Ltd,
Semiconductor Manufacturing International Corp (SMIC)
and China Communications Construction Co
all fell moderately on Friday.
** In another sign of rising tensions, the U.S. Federal
Communications Commission (FCC) said on Thursday it begun the
process of revoking China Telecom's authorization to operate in
the United States.
** Investors are also concerned that Beijing could start
tightening monetary policies amid a robust economic recovery and
surging commodity prices, though analysts do not see any major
policy reversals any time soon.
** "A-share sentiment will likely stay range-bound for the rest
of year amid rising signals of potential policy tightening and
U.S.-China tension uncertainty," Morgan Stanley wrote on Friday.
** Chinese stocks fell across the board. Shares of Chinese
retailer Suning.com Co slumped over 5% on Friday
morning amid lingering concerns over its financial health.
(Reporting by Samuel Shen and Andrew Galbraith, Editing by