* SSEC -0.5%, CSI300 -0.6%, HSI -0.6%
* HK->Shanghai Connect daily quota used 3.2%, Shanghai->HK
quota used 2.6%
* FTSE China A50 -0.3%
SHANGHAI, July 6(Reuters) - China stocks dropped on Tuesday,
with the blue-chip index hitting a near two-month low, as
healthcare firms tumbled on worries over lofty valuations.
** The CSI300 index fell 0.6% to 5,055.65 at the
end of the morning session, while the Shanghai Composite Index
lost 0.5% to 3,515.64.
** Falling the most, the CSI300 healthcare index
slumped 5.1%, on track for its worst day since March 8.
** Hangzhou Tigermed Consulting Co Ltd dropped
14.2%, while Shanghai Fosun Pharmaceutical Group Co Ltd
, Aier Eye Hospital Group Co Ltd, Beijing
Tongrentang Co Ltd and Wuxi AppTec Co Ltd
retreated between 7.2% and 10%.
** "The growth rates of many healthcare firms could not
support their current high valuations," said Yan Kaiwen, an
analyst with China Fortune Securities.
** Yan said some investors shifted to cheaper sectors with
stable growth, including developers.
** The CSI300 real estate index rose 3.4%, with
bellwether Vanke up also 3.4%.
** In Hong Kong, the Hang Seng index dropped 0.6% to
27,980.23, while the Hong Kong China Enterprises Index
lost 0.4%, to 10,232.91.
** The Hang Seng tech index extended declines to
fall 1.4%, as antitrust worries persisted.
** China's antitrust regulator is set to formally block
Tencent Holdings Ltd's plan to merge the country's top
two videogame streaming sites, Huya and DouYu,
three people familiar with the matter told Reuters.
** Tencent edged up 0.5%.
** Hong Kong leader Carrie Lam said on Tuesday "ideologies"
posed risks to national security and urged parents, teachers and
religious leaders to observe the behaviour of teenagers and
report those who break the law to the authorities.
(Reporting by Luoyan Liu and Andrew Galbraith; editing by