Hong Kong shares post weekly gain; report on cybersecurity review waiver lifts financials

* HK->Shanghai Connect daily quota used -3.8%, Shanghai->HK daily quota used 3.1%

* HSI flat, HSCE -0.21%, CSI300 -1.1%

* HK Exchanges and Clearing jumps 3.8% after media report

BEIJING, July 16 (Reuters) - Hong Kong stocks ended higher on Friday marking a weekly gain on policy support hopes and after a media report said companies that are going public in the city will be exempt from cybersecurity reviews. ** At the close of trade, the Hang Seng index was up 8.41 points or 0.03% at 28,004.68. The Hang Seng China Enterprises index fell 0.21% to 10,152.95. ** For the week, the Hang Seng rose 2.41%. ** The benchmark index erased earlier losses in the afternoon session, after a media report said China plans to exempt companies going public in Hong Kong from reviews by the country’s cybersecurity regulator, removing one hurdle for businesses that list in the Asian financial hub instead of the U.S. ** Shares of Hong Kong Exchanges and Clearing rose as much as 5.1% before ending 3.76% higher, touching its highest level since Feb. 24. ** The sub-index of the Hang Seng tracking the financial sector ended 0.35% higher, and the IT sector rose 0.01%. ** The top gainer on the Hang Seng on Friday was Xiaomi Corp , which gained 4.82%, while the biggest loser was Shenzhou International Group Holdings Ltd, which fell 4.85%. ** Sentiment was also bolstered by China’s better-than-expected June activity data revealed on Thursday. ** China’s main Shanghai Composite index closed down 0.71% at 3,539.30 points, while the blue-chip CSI300 index ended down 1.1%. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.37%, while Japan’s Nikkei index closed down 0.98%.

Reporting by Cheng Leng and Andrew Galbraith;Editing by Elaine Hardcastle