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China stocks set for worst week in 2-1/2 months as recovery hopes fade

* SSEC -0.2%, CSI300 0.1%, HSI -0.2%

* HK->Shanghai Connect daily quota used -0.7%, Shanghai->HK daily quota used 1.1%

* FTSE China A50 +0.2%

SHANGHAI, Sept 25 (Reuters) - China’s major indexes flitted in choppy trade on Friday, but are on track for their worst weekly decline since mid-July as the resurgence in COVID-19 cases globally raised concerns about the pace of the global economic recovery.

** The CSI300 index edged up 0.1% to 4,565.50 points at the end of the morning session, while the Shanghai Composite Index lost 0.2% to 3,215.42 points.

** The tech-heavy start-up board ChiNext added 0.2% by midday, while the STAR50 index lost 1.7%.

** For the week, CSI300 dropped 3.6%, while SSEC slid 3.7%, both set for the steepest weekly decline since the week ended July 17.

** The recent slump in overseas equities on virus worries pressured the A-share market, while investors tend to tread cautiously ahead of the week-long National Day Holiday, said Zhang Chengyu, vice general manager of Beijing-based Shiji Hongfan Asset Management Co.

** Britain recorded its highest number of daily COVID-19 cases on Thursday, reflecting a second wave of the virus hitting the country, while Mexico is close to surpassing 75,000 confirmed coronavirus deaths.

** Geopolitical tensions, including Sino-Indian border tensions, and in particular the tensions in the Taiwan Strait, also worried investors, Zhang added.

** Taiwan’s air force scrambled jets last week as multiple Chinese aircraft approached the island and crossed the sensitive midline of the Taiwan Strait, with the island’s government urging Beijing to “pull back from the edge.”

** There was muted reaction from equities investors after FTSE Russell said it will add Chinese government bonds (CGBs) to its flagship World Government Bond Index (WGBI).

** The Hang Seng index dropped 0.2% to 23,262.14 points, while the Hong Kong China Enterprises Index lost 0.3% to 9,340.04 points. (Reporting by Luoyan Liu and Andrew Galbraith, Editing by Sherry Jacob-Phillips)

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