Sino-US Tensions Send HSI Lower At Noon

Hong Kong stocks went into the break on Monday sharply lower as profit-taking and China-US tensions overshadowed strong exports data out of China and vaccine optimism.

The Hang Seng Index fell 1.69 percent, or 453 points, to 26,382.

Mainland shares were down as well.

The CSI300 index fell 0.8 percent to 5,026 at the end of the morning session, while the Shanghai Composite Index lost 0.7 percent to 3,421.

The United States is preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong, according to three sources, including a US official, familiar with the matter.

The news came after the US on Thursday added China's top chipmaker, SMIC, and oil giant CNOOC to a blacklist of alleged Chinese military companies.

"People just started to think the targets of the US sanctions would be Chinese banks or financial institutions," said Steven Leung, executive director at UOB Kay Hian.

He said investors also booked some profits following a sharp rally in financial companies in the past month. (AFP/Reuters)