China, HK stocks fall as fresh US restrictions, trade tariffs loom
Updates closing prices
SHANGHAI, Nov 25 (Reuters) -China's blue-chip index dropped to a five-week low while Hong Kong shares sank to their lowest in two months on Monday, as fresh U.S. crackdown, a looming trade war and elevated geopolitical tensions sapped already fading risk appetite.
** The blue-chip CSI300 Index .CSI300 fell 0.5% to its lowest closing level sinceOct. 17. The Shanghai Composite Index .SSEC slipped 0.1% and toucheda three-week low.
** In Hong Kong, the benchmark Hang Seng Index .HSI lost 0.4%, shedding almost allgains posted since late September when China's policy stimulus triggered a rally.
** "We expect a volatile year ahead for the Chinese equities market with a conflux of forces pulling and pushing the markets," said James Wang, head of China strategy, UBS Investment Bank Research.
** Near-term challenges include U.S. trade tariffs, uncertainty around U.S. policies against China, and retail inflows showing signs of plateauing, Wang said, expecting a 5% potential downside until the end of the first quarter next year.
** The Biden administration is set to unveil new export restrictions on China as soon as this week, and the new regulations could add up to 200 Chinese chip companies to a trade restriction list.
** In addition, thenomination as U.S. Treasury Secretary of fund manager Scott Bessent, who worked for billionaire investor George Soros and noted short-seller Jim Chanos, stirs concerns of a possible financial war against China.
** China-listed tech stocks slumped on Monday. An index tracking integrated circuit makers .CSI932087 fell 1.3%,while the tech-focused STAR 50 Index .STAR50 lost 1.2%.
** Bucking the sombre mood, an index of green vehicle makers .CSI930997 rose 1.6%on news that Brussels and Beijing were nearing a solution over tariffs on Chinese electric vehicle imports into the bloc.
** In Hong Kong, tech .HSTECH and property shares .HSMPI led the declines.
Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips and Eileen Soreng
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