HK stocks end lower as techs decline after China ramps up sector scrutiny

* HK->Shanghai Connect daily quota used 2.6%, Shanghai->HK daily quota used 2.2%

* HSI -0.7%, HSCE -0.4%, CSI300 +0.2%

* FTSE China A50 -0.1%

Dec 15 (Reuters) - Hong Kong stocks closed lower on Tuesday, weighed down by IT firms after China warned its internet giants to brace for increased scrutiny, though upbeat data helped limit losses.

** The Hang Seng index fell 0.7% to 26,207.29, while the China Enterprises Index lost 0.4% to 10,399.56 points.

** Falling the most, the Hang Seng IT index dropped 1.8%. The index has gained more than 60% so far this year, as investors chased tech players amid Beijing’s push for tech self-sufficiency.

** China warned its internet giants on Monday that it would not tolerate monopolistic practices, as it slapped fines and announced probes into deals involving Alibaba Group and Tencent Holdings.

** This is the first time that Beijing has fined any Internet company for violating the 2008 anti-monopoly law by not properly reported deals for anti-trust vetting.

** Alibaba and Tencent retreated 2.2% and 1.9%, respectively.

** Internet firms would continue to feel the pressure for the short term after Beijing’s latest regulatory move on the sector, KGI Securities noted in a report.

** Though upbeat factory data on the mainland helped limit losses in the index. China’s factory output grew at the fastest pace in 20 months in November, as revived consumer spending and a gradual easing of COVID-19 restrictions in major trading partners lifted demand for the country’s manufactured goods.

** China’s central bank made its biggest ever injection of medium-term funds on Tuesday to shore up liquidity, after recent corporate bond defaults shattered investor confidence and scupper new issuances. (Reporting by the Shanghai Newsroom, Editing by Sherry Jacob-Phillips)