Hong Kong stocks snap four-day rally on profit-taking

* HK->Shanghai Connect daily quota used -0.7%, Shanghai->HK daily quota used 4.7%

* HSI -0.2%, HSCE +0.2%, CSI300 -0.1%

* FTSE China A50 +0.0%

SHANGHAI, Aug 20 (Reuters) - Hong Kong stocks ended lower on Tuesday as investors locked in profit after a four-day winning streak following Beijing's interest rate reform, which boosted riskier assets and tempered recession fears.

** The Hang Seng index ended down 0.2% at 26,231.54, while the China Enterprises Index closed 0.2% higher at 10,132.77.

** China lowered its new lending reference rate slightly on Tuesday, as expected, as the country's central bank kicked off new interest rate reforms designed to lower corporate borrowing costs.

** Analysts and investors say the reforms are an official attempt to lower financing costs in the world's second-largest economy, which has faced continued pressure from weakening demand at home and an extended trade war with the United States.

** Hong Kong leader Carrie Lam said on Tuesday she hoped a peaceful anti-government weekend protest was the start of an effort to restore calm and that talks with non-violent protesters would provide "a way out" for the Chinese-ruled city.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.36%, while Japan's Nikkei index closed up 0.55%.

** The yuan was quoted at 7.0622 per U.S. dollar at 0814 GMT, 0.16% weaker than the previous close of 7.0509.

** The top gainers among H-shares were CSPC Pharmaceutical Group Ltd up 11.42%, followed by ANTA Sports Products Ltd, gaining 4.87% and Sinopharm Group Co Ltd , up by 3.31%.

** The three biggest H-shares percentage decliners were Country Garden Holdings Co Ltd, which was down 1.80%, CITIC Ltd, which fell 1.19% and PICC Property and Casualty Co Ltd, down by 1.12%.

** At close, China's A-shares were trading at a premium of 30.33% over Hong Kong-listed H-shares. (Reporting by the Shanghai Newsroom, Editing by Sherry Jacob-Phillips)

2019-08-20 10:29:53

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