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China's blue-chip index hits 5-1/2-year high on upbeat data; Hong Kong slips

* SSEC 1.1%, CSI300 1.3%, HSI -0.5%

* HK->Shanghai Connect daily quota used 7.9%, Shanghai->HK daily quota used 4.6%

* FTSE China A50 +1.4%

SHANGHAI, Nov 30 (Reuters) - China’s blue-chip index scaled a near 5-1/2-year high on Monday, led by gains in traditional industries, as upbeat factory activity data showed continued recovery in the world’s second-largest economy amid the coronavirus outbreak.

** The CSI300 index rose 1.3% to 5,045.01 points, its highest since June 18, 2015, while the Shanghai Composite Index gained 1.1% to 3,444.84 points.

** Leading the gains, the Shanghai SE50 index, which tracks the 50 most representative traditional stocks on the Shanghai Stock Exchange, climbed as much as 2% to its highest since February 2008.

** China’s factory activity expanded at the fastest pace in more than three years in November, while growth in the services sector also hit a multi-year high, as the country’s economic recovery from the coronavirus stepped up.

** Upbeat data released on Monday suggests the world’s second-largest economy is on track to become the first to completely shake off the drag from widespread industry shutdowns, with recent production data showing manufacturing now at pre-pandemic levels.

** The main reason for the strong rally was China’s continued recovery, said Zhang Gang, an analyst with China Central Securities.

** The cyclicals rally would also continue for a while as their low valuations remain low, at least before China’s Lunar New Year holiday if investors do not find good opportunities in growth players, he added.

** In Hong Kong, stocks fell as energy firms dragged. The Hang Seng index dropped 0.5% to 26,760.53 points, while the Hong Kong China Enterprises Index lost 0.2% to 10,771.61.

** The Hang Seng energy slumped 5.6% by midday, led by China’s national offshore oil and gas producer CNOOC Ltd tumbling 10.4% after news of U.S. blacklisting. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Vinay Dwivedi)

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