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Hong Kong stocks end higher on robust mainland inflows

* HK->Shanghai Connect daily quota used 0.7%, Shanghai->HK daily quota used 24.4%

* HSI +0.1%, HSCE +1.0%, CSI300 -1.0%

* FTSE China A50 -1.0%

Jan 11 (Reuters) - Hong Kong stocks ended higher on Monday despite latest tensions between China and the United States, as mainland investors continued to hunt bargains via the Stock Connect.

** The Hang Seng index rose 0.1%, to 27,908.22, while the China Enterprises Index gained 1.0%, to 11,059.51 points.

** Mainland investors on Monday purchased a net 18.9 billion yuan ($2.92 billion) worth of Hong Kong stocks via the Stock Connect linking Shanghai, Shenzhen and Hong Kong, Refinitiv data showed.

** As U.S. investors dump shares in Chinese companies blacklisted by outgoing President Donald Trump, bargain hunters in China are taking the opposite side of that trade, wagering that a Joe Biden presidency will reverse the investment ban.

** Wall Street institutions in Hong Kong said they are reducing exposure to Chinese companies named in a U.S. ban on investments in companies Washington considers linked to China’s military before the rules comes into force later on Monday.

** Alex Wong, director at Ample Finance Group in Hong Kong said the delistings would “not have too much impact”, as customers could switch to Europe or China-based issuers.

** The Hang Seng telecommunications index jumped 4.3% on Monday.

** Also helping provide some support was data showing that China’s factory gate prices fell last month at their slowest pace since February, suggesting the country’s manufacturing sector continues to see a rapid recovery from the COVID-19 shock.

** Though some urged caution following a strong rally.

** “Investors need to be prudent given signs of resurgence of the coronavirus outbreak on the mainland, and as there still is a possibility that the Trump administration could issue more bans against Chinese companies,” Guodu Hong Kong noted in a report.

** Mainland China saw its biggest daily increase in COVID-19 cases in more than five months, the country’s national health authority said on Monday. ($1 = 6.4752 Chinese yuan renminbi) (Reporting by the Shanghai Newsroom; Editing by Shailesh Kuber)

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