* Shanghai stocks -1.1%, blue-chip CSI300 -1.04%
* Financials, real estate, energy sectors weigh
* Negative earnings growth could extend into Q4 -UBS
SHANGHAI, Nov 2 (Reuters) - Chinese shares fell on Tuesday as energy, financials and real estate stocks weighed amid growing concerns about China's economic outlook. ** At the close, the Shanghai Composite index was down 1.1% at 3,505.63. ** The blue-chip CSI300 index was down 1.04%, with its financial sector sub-index lower by 2.33% and the real estate index down 2.36%. ** Shares and bonds of Chinese property developers stumbled as worries over spreading financial contagion worsened following a debt exchange from one of the country's top 20 homebuilders that triggered a flurry of credit warnings.
** The CSI energy index fell 2.55%, following a 13% drop on Monday. China said on Sunday it was releasing gasoline and diesel reserves to boost market supply and stabilise prices.
** "Negative growth in Q3 earnings might deepen investors' concerns about an economic downturn. Looking into Q4, weaker economic activities and a higher earnings base could weigh further on growth momentum, and we do not rule out negative earnings growth continuing in Q4," analysts at UBS said in a report.
** "We think cyclical sectors will face greater pressure for downward revisions to earnings along with the current notable slowdown in earnings growth," they added.
** The smaller Shenzhen index ended down 0.9% and the start-up board ChiNext Composite index was higher by 0.23%. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.25%, while Japan's Nikkei index closed down 0.43%. ** At 07:00, the yuan was quoted at 6.399 per U.S. dollar, 0.01% weaker than the previous close of 6.3982. ** So far this year, the Shanghai stock index is up 0.9% and the CSI300 has fallen 7.1%, while China's H-share index listed in Hong Kong is down 17.5%. Shanghai stocks have declined 1.18% this month. (Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)
