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China stocks retreat from 13-year high on Sino-U.S. tensions; Hong Kong up

* SSEC -0.6%, CSI300 -1.0%, HSI 1.3%

* HK->Shanghai Connect daily quota used 11.1%, Shanghai->HK daily quota used 12.4%

* FTSE China A50 -1.4%

SHANGHAI, Jan 8 (Reuters) - China stocks retreated from a 13-year high on Friday, as investors booked profits following a strong rally amid worries over Sino-U.S. tensions.

** The CSI300 index fell 1.0%, to 5,458.06 points at the end of the morning session, while the Shanghai Composite Index lost 0.6%, to 3,553.96 points.

** Trump administration officials are expected to discuss a proposed expansion of an executive order banning U.S. investment in alleged Chinese military companies at a Thursday afternoon meeting.

** The U.S. ambassador to the United Nations, Kelly Craft, will visit Taiwan on Jan. 13-15 for meetings with senior Taiwanese officials, the U.S. mission to the U.N. said on Thursday, prompting China to warn they were playing with fire.

** Leading the decline on Friday, the CSI300 consumer staples index and the CSI300 materials index dropped 2.6% and 1.9%. Including session’s losses, both indexes are still up 8.2% and 12% this year, respectively.

** The CSI new energy index, tracking China’s high-flying new energy sector, retreated 3.2%. The index has gained 8% this year following a 105% rise in 2020 thanks in part to China’s carbon neutrality pledge.

** “There are signs of crowded trade in some hot sectors for now as investors expect more fund inflows via mutual funds,” said Jin Jing, an analyst with Caitong Securities.

** Jin also noted the weakness in small-cap stocks since China published new delisting rules.

** In late last year, China’s exchanges published new rules for simplifying the delisting process for public companies.

** In Hong Kong, the Hang Seng index added 1.3%, to 27,899.47 points, while the Hong Kong China Enterprises Index gained 1.7%, to 10,980.60.

** Bucking the broad gains, the Hang Seng telecommunications index tumbled 4.9%, after global index providers MSCI Inc and FTSE Russell said they would cut three Chinese telecom companies from their benchmarks in response to a U.S. investment ban. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Shailesh Kuber)

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