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Hong Kong stocks weaken as Sino-U.S. tensions weigh

* HK->Shanghai Connect daily quota used 7.9%, Shanghai->HK daily quota used -1.2%

* HSI -0.7%, HSCE -0.8%, CSI300 +0.9%

* FTSE China A50 +0.9%

Dec 21 (Reuters) - Hong Kong stocks ended lower on Monday on worries over China-U.S. tensions, although losses were capped by policy support from Beijing.

** The Hang Seng index fell 0.7% to 26,306.68, while the China Enterprises Index lost 0.8% to 10,401.83.

** U.S. lawmakers will back $1.9 billion to fund a program to remove telecom network equipment that the U.S. government says poses national security risks as part of a $900 billion COVID-19 relief bill, two sources briefed on the matter said on Sunday.

** The Hang Seng telecommunications index fell 2.4% after the news.

** Hong Kong shares in China’s top chipmaker SMIC dropped 3.8% after the company said on Sunday that being put on a U.S. trade blacklist would pose a significant adverse impact to its research and development in its 10-nanometer and more advanced chip technology.

** The United States added dozens of Chinese companies, including SMIC and Chinese drone manufacturer SZ DJI Technology Co, to a trade blacklist on Friday.

** Increasing Sino-U.S. tensions could continue to weigh on the market, while there would be less trading activity as the Christmas holiday nears, Guodu Hong Kong noted in a report.

** China will maintain policy support for its economic recovery, avoiding a sudden shift in policy, to help keep economic growth within a reasonable range in 2021, the Xinhua news agency said on Friday, after a meeting of top leaders ended.

** The annual Central Economic Work Conference, a gathering of top leaders and policymakers to chart the economy’s course in 2021, is being watched by investors amid speculation that Beijing would make policy changes as economic growth accelerates after a virus-induced slump earlier this year. (Reporting by the Shanghai Newsroom; Editing by Aditya Soni)

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