* SSEC -1.4%, CSI300 -1.0%, HSI -0.6%
* HK->Shanghai Connect daily quota used -1.8%, Shanghai->HK
quota used 2.7%
* FTSE China A50 -0.8%
SHANGHAI, July 15 (Reuters) - China and Hong Kong shares
fell on Wednesday on deepening worries about Sino-U.S.
decoupling after President Trump signed a bill that would
penalize banks doing business with Chinese officials who
implement the new security law.
** At the midday break, the Shanghai Composite index was
down 1.39% at 3,367.21 points, erasing earlier gains.
** China's blue-chip CSI300 index was down 1.04%, with
its financial sector sub-index dropping 1.79%, the
consumer staples sector up 0.55%, the real estate
index down 2.15% and the healthcare sub-index
** Chinese H-shares listed in Hong Kong fell 0.69% to
10,333.46, while the Hang Seng Index was down 0.55% at
25,337.34, after opening higher at 1.6%.
** U.S. president Donald Trump on Tuesday ordered an end to Hong
Kong's special status under U.S. law to punish China for what he
called "oppressive actions" against the former British colony,
and signed a bill approved by the U.S. Congress to penalize
banks doing business with Chinese officials who implement the
new security law.
** China said on Wednesday it will impose retaliatory sanctions
on U.S. individuals and entities after Trump's move.
** The sanction threats over Hong Kong would dent short-term
sentiment and cast shadow on funding flows of the city, said
Zhang Qi, analyst with Haitong Securities, adding that the
latest bill reinforced the idea that frictions between China and
U.S. has become normalized.
** The smaller Shenzhen index was down 1.77% and the
start-up board ChiNext Composite index was weaker by
** Around the region, MSCI's Asia ex-Japan stock index
firmed up by 0.29%, while Japan's Nikkei index
** The yuan was quoted at 7.0024 per U.S. dollar,
0.07% firmer than the previous close of 7.0075.
(Reporting by Cheng Leng, Luoyan Liu and Andrew Galbraith,
Editing by Sherry Jacob-Phillips)