China blue-chips head for worst week in 3 months as foreign investors sell

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SHANGHAI, Dec 17 (Reuters) - China's blue-chip stock index fell on Friday, putting it on course for its worst week in three months, as foreign investors sold shares on worries about regulatory impacts and a global resurgence of COVID-19 cases.

** At the midday break, the Shanghai Composite index (.SSEC) was down 0.9% at 3,641.77 points.

** China's blue-chip CSI300 index (.CSI300) was down 1.31%, putting it on course for its worst week since mid-September.

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** Adding to tensions between the United States and China, Washington on Thursday put investment and export restrictions on dozens of Chinese companies, including top drone maker DJI, accusing them of complicity in the oppression of China's Uyghur minority or helping the military. read more

** Washington still has not decided whether to block more sales of U.S. technology to Chinese chipmaker SMIC (0981.HK), sources told Reuters. SMIC shares gained 0.76% in Hong Kong on Friday, but have fallen more than 13% this month. read more

** Foreign investors were net sellers of A-shares, with Refinitiv data showing outflows of nearly 1.6 billion yuan ($251.20 million) through Stock Connect. (.NQUOTA.SH), (.NQUOTA.ZK)

** Consumer staples firms (.CSI000912), including distillers favoured by foreign investors, fell 2.46% on the day.

** Energy firms (.CSI000908) fell 1.9% and the information technology sector (.CSIINT) lost 1.77%.

** Chinese H-shares listed in Hong Kong (.HSCE) fell 1.77% to 8,202.18, while the Hang Seng Index (.HSI) lost 1.28% to 23,175.19.

** Tencent Holdings (0700.HK) fell 3.14% despite regulatory approval to publish updates to mobile apps including QQ Music and WeCom, amid continuing concerns over a crackdown on tech firms. read more

** The IT sector in Hong Kong (.HSCIIT) dropped 3.3% and the Hang Seng Tech index (.HSTECH) fell 2.63%, touching a record low.

** The Shenzhen index (.SZSC) was down 1.13%, the ChiNext start-up board (.CNT) was 1.38% weaker and Shanghai's tech-focused STAR50 index (.STAR50) fell 1.74%​.

** The yuan softened to 6.3698 per U.S. dollar from a previous close of 6.369.

($1 = 6.3695 Chinese yuan)

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Reporting by Andrew Galbraith; Editing by Subhranshu Sahu

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