Shanghai shares set to snap five weeks of gains after Wall St selloff; Hong Kong down

* SSEC -1.4%, CSI300 -1.6%, HSI -1.8%

* HK->Shanghai Connect daily quota used -3.7%, Shanghai->HK daily quota used 6.3%

* FTSE China A50 -1.6%

SHANGHAI, Sept 4(Reuters) - China stocks fell on Friday after a sharp overnight selloff in Wall Street, with the benchmark Shanghai index set to snap a five-week winning streak.

** The CSI300 index fell 1.6% to 4,740.73 points at the end of the morning session, while the Shanghai Composite Index dropped 1.4% to 3,338.14 points.

** The tech-heavy start-up board index lost 1.7%, while the STAR50 index eased 1.2%.

** For the week, CSI300 was down 2.1%, while SSEC shed 1.8% and is on track to break a five-week winning streak.

** Wall Street’s main indexes marked their deepest one-day dives in months on Thursday as investors dumped the high-flying technology sector, while economic data highlighted concerns about a long and difficult recovery.

** The U.S. selloff dented sentiment in the A-share market, as foreign investors tended to retreat via the Stock Connect after such corrections, said Zheng Zichun, an analyst with AVIC Securities.

** Investors on Friday sold a net 3.75 billion yuan ($548.14 million) worth of China stocks via the Stock Connect linking mainland and Hong Kong, which allows foreign investors access to the country’s onshore equities, according to Refinitiv data.

** Leading the declines, the CSI300 consumer staples index dropped 3.2% by midday on worries about lofty valuations.

** Apple Inc’s suppliers also fell, after the iPhone maker’s shares slipped 8% overnight.

** However, AVIC Securities’ Zheng remained optimistic about the long-term outlook for A-shares, citing low valuations compared with their U.S. peers and Beijing’s continued policy support as it needs a robust market to finance the country’s tech industries.

** Bucking the broad retreat, China’s semiconductor firms climbed on report of new policies to prop up the chip sector.

** In Hong Kong, the Hang Seng index dropped 1.8%, to 24,551.18 points, while the Hong Kong China Enterprises Index lost 1.3%, to 9,809.44 points.

($1 = 6.8413 Chinese yuan renminbi)

Reporting by Luoyan Liu and Brenda Goh; Editing by Amy Caren Daniel

Nuestros Estándares: Los principios Thomson Reuters.