Hong Kong stocks slip as China COVID woes weigh

SHANGHAI, Dec 23 (Reuters) - Hong Kong stocks slipped as

soaring COVID cases in China disrupted economic activity and

dented investor sentiment, while concerns over a hawkish U.S.

Federal Reserve also dragged on regional markets amid subdued

Chinese equities. ** China's blue-chip CSI 300 Index and Shanghai

Composite Index were little changed by the end of the

morning session. ** Hong Kong's Hang Seng Index lost 0.5%, and Hang

Seng China Enterprises Index declined 1.1%. ** For the week, the CSI 300 Index was down 3% so far, while

the Hang Seng Index edged up 0.6%. ** Other Asian shares eased, tracking a dive on Wall Street,

while the dollar firmed as strong U.S. data revived fears the

Fed will have to retain its hawkish stance to tame inflation. ** China is expecting a peak in COVID-19 infections within a

week, a health official said, with authorities predicting extra

strain on the country's health system even as they downplay the

disease's severity and continue to report no new deaths. ** "As China moves toward reopening, economic activities

have slowed down significantly amid national outbreaks, and this

weighs on investor sentiment," said Morgan Stanley analysts in a

note. ** Shares in semiconductors lost 1.7%, new

energy declined 1.3%, while consumer staples

added 1%. ** Tech giants listed in Hong Kong retreated 1.9%. ** "We don't think the rebound is finished, while the market

will focus more on the implemention of policies and the recovery

of fundamentals," said Max Luo, director of asset allocation at

UBS Asset Management in China, expecting more chances in China

market in 2023.

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)