* SSEC -0.5%, CSI300 -0.8%, HSI -0.4%
* HK->Shanghai Connect daily quota used -1.4%, Shanghai->HK
quota used 2.4%
* FTSE China A50 -1.1%
SHANGHAI, June 8 (Reuters) - China stocks fell on Tuesday,
weighed down by liquor makers, as investors worried about lofty
valuations and Sino-U.S. tensions.
** The CSI300 index fell 0.8% to 5,234.33 at the
end of the morning session, while the Shanghai Composite Index
lost 0.5% to 3,581.25.
** Falling the most, the CSI300 consumer staples index
dropped 2.9%, while the CSI liquor index
** Anhui Yingjia Distillery and Sichuan Swellfun
both slumped by their 10% daily trade limits, while
Hebei Hengshui Laobaigan Liquor, Jinhui Liquor
and Anhui Golden Seed Winery all fell
more than 9%.
** The retreat came as the liquor index neared its record
high hit in mid-February, and after the index gained 12% and
12.5% in May and April, respectively.
** "The price to earnings ratios of liquor makers, not
including Moutai and Wuliangye, have reached more than 60
overall, which is way too high despite improvements in their
fundamentals," said Yan Kaiwen, an analyst with China Fortune
** Yan said liquor stocks would face a big correction going
** Meanwhile, U.S. President Joe Biden's order last week
banning U.S. investment in certain Chinese companies is broader
than a similar one signed by his predecessor Donald Trump and
has a lower bar, making it easier to add more companies later.
** U.S. Secretary of State Antony Blinken on Monday signaled
a possible resumption of trade and investment talks with Taiwan
stalled since the Obama administration, but gave no indication
of any willingness to pursue a full-scale trade pact Taipei has
** In Hong Kong, the Hang Seng index dropped 0.4%, to
28,685.50 points, while the Hong Kong China Enterprises Index
lost 0.5%, to 10,697.06.
(Reporting by Luoyan Liu and Andrew Galbraith;)