Hong Kong: Stocks end lower on news that US to blacklist more Chinese firms

[HONG KONG] Hong Kong stocks closed lower on Friday, as market sentiment soured on news that the United States is set to add dozens of Chinese companies to a trade blacklist, ramping up tensions between Washington and Beijing.

Sources told Reuters that the move, which has not previously been reported, is seen as the latest in President Donald Trump's effort to cement his tough-on-China legacy. It comes just weeks before Democratic President-elect Joe Biden is set to take office on Jan 20.

Washington is also expected to add China's top chipmaker SMIC to the blacklist. In total, the United States is expected to add around 80 additional companies and affiliates to the so-called entity list, nearly all of them Chinese.

At the close of trade, the Hang Seng index was down 179.78 points or 0.67 per cent at 26,498.60.

China's main Shanghai Composite index closed 0.29 per cent weaker at 3,394.90 points, while the blue-chip CSI300 index ended 0.35 per cent lower.

REUTERS