Hong Kong stocks slip, but mainland rally checks losses

* HK->Shanghai Connect daily quota used 6.8%, Shanghai->HK daily quota used 8.2%

* HSI -0.1%, HSCE +0.9%, CSI300 +3.0%

* FTSE China A50 +2.5%

July 20 (Reuters) – Hong Kong stocks fell on Monday but recouped much of their losses, helped by robust gains on the mainland as Beijing signalled support for its market.

** At the close of trade, the Hang Seng index was down 31.18 points, or 0.12%, at 25,057.99 after falling as much as 1.3%, while the Hang Seng China Enterprises index, which tracks mainland firms listed in Hong Kong, added 0.9% to 10,295.32.

** The top gainer on the Hang Seng was China Life Insurance Co Ltd, which gained 8.32%, while the biggest loser was Wharf Real Estate Investment Company Ltd, which fell 5.86%.

** Leading the gains, Hang Seng materials index jumped 4.7%, while properties and construction index ended 1.9% higher.

** China stocks rose 3% on Monday, led by financial firms, after regulators moved to bolster the market by lifting equity investment cap for insurers and encouraging mergers and acquisitions among brokerages and mutual fund houses.

** Mainland investors purchased a net 6 billion yuan ($858.42 million) worth of Hong Kong shares on Monday via the Stock Connect linking the island and mainland, according to Refinitiv data.

** Britain will suspend its extradition treaty with Hong Kong on Monday in an escalation of its dispute with China over its introduction of a national security law for the former British colony, newspapers reported.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.17%, while Japan’s Nikkei index closed 0.09% higher.

** The yuan was quoted at 6.9904 per U.S. dollar at 07:49 GMT, 0.02% firmer than the previous close of 6.9915.

** At close, China’s A-shares were trading at a premium of 33.55% over Hong Kong-listed H-shares. ($1 = 6.9896 Chinese yuan renminbi) (Reporting by the Shanghai Newsroom; Editing by Krishna Chandra Eluri)

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