* SSEC -1.21%, CSI300 -1.28%

* Shares erase early gains after regulator comment on inflows

* Foreign investors net sellers through Stock Connect

SHANGHAI, March 2 (Reuters) - China's benchmark stock indexes fell on Tuesday after the banking and insurance regulator said it was studying plans to manage inflows and prevent market turbulence, with consumer firms leading the decline on foreign investor selling.

** The China Banking and Insurance Regulatory Commission warned of the risk of bubbles bursting in foreign markets, and said the country was studying measures to manage capital inflows to prevent domestic market turbulence. ** The comments saw the benchmark Shanghai Composite index erase early gains to close 1.21% lower at 3,508.59. ** The blue-chip CSI300 index fell 1.28%, with the consumer staples sector down 2.85%, the financial sector sub-index down 1.02% and the healthcare sub-index 2.28% lower. ** Refinitiv data showed foreign investors were net sellers of Chinese A-shares through the Stock Connect programme. ** Distillers, which have been favoured investment targets of foreign investors, dragged the consumer index lower. Kweichow Moutai Co Ltd slumped 4.63% after a 1.66% rise on Monday. Wuliangye Yibin Co Ltd fell 2.88%. ** Chinese equities have also come under pressure in recent sessions on worries around policy tightening, and investors now eye the parliamentary session that will chart a course for economic recovery and unveil a five-year plan to fight stagnation. ** The smaller Shenzhen index ended down 0.76% and the start-up board ChiNext Composite index was weaker by 0.93%. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.19%, while Japan's Nikkei index closed down 0.86%. ** At 07:06 GMT, the yuan was quoted at 6.4735 per U.S. dollar, 0.1% weaker than the previous close of 6.4673. ** So far this year, the Shanghai stock index is up 1% and the CSI300 has risen 2.7%, while China's H-share index listed in Hong Kong is up 5.9%. Shanghai stocks have declined 0.01% this month. (Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)