* SSEC 0.0%, CSI300 0.0%, HSI -0.3%
* China says in close communication with U.S. over Oct trade talks
* China’s Aug industrial profits fall as headwinds hit firms
SHANGHAI, Sept 27 (Reuters) - China stocks were little changed on Friday morning, but were set to post their biggest weekly decline since early August on trade uncertainties and slowing growth, ahead of a week-long holiday. Hong Kong shares slipped.
** The CSI300 index was unchanged at 3,842.67 points at the end of the morning session, while the Shanghai Composite Index was flat at 2,928.97 points.
** The indexes were down 2.4% and 2.6% so far this week.
** The Hang Seng index dropped 0.3%, to 25,963.28 points, while the Hong Kong China Enterprises Index lost 0.5%, to 10,156.97 points.
** Profits at China’s industrial firms contracted in August, reversing the previous month’s brief gain, as weak domestic demand and the trade war with the United States weighed on corporate balance sheets.
** “Given strong growth headwinds and elevated U.S.-China trade tensions, we expect the economy to worsen before getting better and believe Beijing will likely ramp up its policy stimulus,” analysts from Nomura said in a note.
** China said on Thursday it’s in close communication with U.S. over trade talks, while a top diplomat said Beijing is willing to buy more U.S. products.
** But mixed signals from Washington and Beijing raised doubts whether the two sides would make any progress in their next round of trade talks.
** Political uncertainty in Hong Kong is likely to continue, with the island bracing for a weekend of unrest as pro-democracy protests are likely to mount in the China-ruled territory ahead of the 70th anniversary of the founding of the People’s Republic on Tuesday.
** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.28%, while Japan’s Nikkei index was down 1.24%.
** The yuan was quoted at 7.1354 per U.S. dollar, 0.06% weaker than the previous close of 7.131.
** The largest percentage gainers in the main Shanghai Composite index were Fujian Raynen Technology Co Ltd , up 10.03%, followed by WPG (Shanghai) Smart Water Public Co Ltd, gaining 10% and Jiangyin Jianghua Microelectronics Materials Co Ltd, up by 9.99%.
** The largest percentage losses in the Shanghai index were Shangying Global Co Ltd, down 10.01%, followed by Shanghai Sinotec Co Ltd, losing 10% and Hangzhou Freely Communication Co Ltd, down by 8.55%.
** The top gainers among H-shares were Geely Automobile Holdings Ltd, up 3.77%, followed by China Resources Beer Holdings Co Ltd, gaining 0.73% and China Mobile Ltd, up by 0.39%.
** The three biggest H-shares percentage decliners were SINOPHARM GROUP CO LTD, which has fallen 2.95%, Longfor Group Holdings Ltd, which has lost 1.7% and CNOOC Ltd, down by 1.6%.
** As of 04:14 GMT, China’s A-shares were trading at a premium of 30.14% over the Hong Kong-listed H-shares.
Reporting by Luoyan Liu and John Ruwitch; Editing by Aditya Soni