SHANGHAI, Feb 26 (Reuters) - China stocks closed down on Monday, after rising for nine consecutive sessions, as investors questioned whether the recent rally could be sustained.

** China's blue-chip CSI300 Index ended 1% lower, while the Shanghai Composite Index lost 0.9%. The Hong Kong benchmark Hang Seng Index fell 0.5%.

** The CSI300 Index rebounded roughly 12% from its five-year low hit earlier this month but investors are wondering whether the trend could last.

** The recent rebound is more because of the market being oversold and short covering, said Raymond Chan, chief investment officer for equity in Asia Pacific at Allianz Global Investors.

** "As long as the deflation cycle is still there, it's going to be a concern for the Chinese equity market," Chan said.

** The rebound has come about from a combination of state-led intervention and regulatory restrictions, said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.

** "So, there is certainly a question mark about how sustainable is the rebound," Tan said.

** China's President Xi Jinping held a meeting of a key economic policy body on Friday, the Central Financial and Economic Affairs Commission, to discuss providing support to manufacturers and lowering logistics costs, state media reported.

** Consumer discretionary and auto shares rose 1.1% and 1.9%, respectively, bucking the trend.

** Meanwhile, Chinese investors continued pouring money into Japan- and U.S.- focused stock funds as the Nikkei and Nasdaq kept rallying, triggering warnings from fund managers about market risks.

** ICBC Credit Suisse Asset Management flagged risks to investors on Monday for its exchange-traded fund (ETF) tracking the Nikkei 225 as the trading price far exceeded the net asset value of the fund.

** In Hong Kong, Country Garden Services Holdings jumped 5.3%.

** Shares of sports brands Anta and Lining dropped roughly 2% and 3.8%, respectively. (Reporting by Shanghai Newsroom; Editing by Sohini Goswami)