China stocks firm on upbeat industrial profits; Hong Kong down
* SSEC -0.1%, CSI300 +0.1%, HSI -0.2%
* HK->Shanghai Connect daily quota used -0.2%, Shanghai->HK daily quota used 3.4%
* FTSE China A50 +0.4%
SHANGHAI, Nov 27 (Reuters) - China's blue-chip stocks rose on Friday, helped by upbeat industrial profits that pointed to a continued recovery in the world's second largest economy amid the coronavirus outbreak.
** The CSI300 index rose 0.1% to 4,924.15 points at the end of the morning session, while the Shanghai Composite Index fell 0.1% to 3,368.12 points.
** Profits at Chinese industrial firms rose 28.2% year-on-year in October to 642.91 billion yuan ($97.79 billion), official data showed on Friday, pointing to a steady recovery in the manufacturing sector after it was hit by the COVID-19 pandemic.
** For 2021, China's real GDP growth is forecast to grow by 8.2% y/y, Wendy Liu, head of China Strategy at UBS Global Research, wrote in a report.
** UBS has set a target of 5,450 and 6,300 at end-2021 and end-2022, respectively, for the blue-chip CSI300 index, adding mainland households could raise exposure to onshore equities in the next two year.
** Analysts said bond defaults and Sino-U.S. tensions would continue to weigh on the market.
** The Trump administration is close to declaring that 89 Chinese aerospace and other companies have military ties, restricting them from buying a range of U.S. goods and technology, according to a draft copy of the list seen by Reuters.
** There is still some lingering concern about the recent surprise SOE bond defaults, while the U.S. list could impact investor sentiment negatively if published, Morgan Stanley analysts noted in a report.
** A spurt of missed debt repayments by three Chinese state-owned firms - a coal miner, a chipmaker and an automobile company - has shaken local markets and heightened speculation that a campaign to wean the economy off heavy credit is back.
** The Hang Seng index dropped 0.2% to 26,776.83 points, while the Hong Kong China Enterprises Index gained 0.1% to 10,716.05. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Vinay Dwivedi)
