* SSEC -0.4%, CSI300 -0.6%, HSI -0.2%
* HK->Shanghai Connect daily quota used -0.4%, Shanghai->HK daily quota used 2.2%
* FTSE China A50 -0.5%
SHANGHAI, Aug 9 (Reuters) - China and Hong Kong stocks reversed earlier gains to fall on Friday, after data showed China’s producer prices fell for the first time in three years in July, while a selloff in high-profile tech firms also dampened already fragile sentiment.
** The CSI300 index fell 0.6% to 3,646.51 points at the end of the morning session, while the Shanghai Composite index lost 0.4% to 2,784.09 points. CSI300 is down 2.7% and the Shanghai Composite lost 2.9% this week.
** The Hang Seng index dropped 0.2% to 26,073.57 points, while the Hong Kong China Enterprises Index lost 0.1% to 10,036.00 points.
** China’s factory gate prices shrank for the first time in three years in July, stoking deflation worries and putting pressure on Beijing to deliver more stimulus as the economy sputters amid an intensifying trade war with the United States.
** “Weak demand has started to impact expectations on the production side,” Zou Qiang, analyst at Everbright Pramerica Fund Management said in a note.
** Zou expects the price contraction to worsen in the coming months due to stricter curbs on the property sector, as regulators try to rein in debt risks.
** In late morning trade, some leading China-listed firms, including the country’s No.2 telecom equipment maker ZTE tumbled amid worries over a U.S. ban.
** That pushed the index tracking major telecoms index on the mainland lower by 2%.
** The U.S. agency responsible for government contracts on Wednesday released an interim rule for a ban on federal purchases of telecommunications equipment from five Chinese companies, including Huawei and ZTE.
** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.23%, while Japan’s Nikkei index was up 0.54%.
** The yuan was quoted at 7.0514 per U.S. dollar, 0.08% weaker than the previous close of 7.0455.
** The largest percentage gainers in the main Shanghai Composite index were Ningbo United Group Co Ltd, up 10.07%, followed by Chengtun Mining Group Co Ltd, gaining 10.06% and Autobio Diagnostics Co Ltd, up by 10%.
** The biggest percentage losers in the Shanghai index were Guangdong Hotata Technology Group Co Ltd, down 10.02%, followed by Anzheng Fashion Group Co Ltd, losing 9.97% and Angel Yeast Co Ltd, down by 9.95%.
** The top gainers among H-shares were China Mobile Ltd , up 3.89%, followed by China Telecom Corp Ltd , gaining 1.48% and Dongfeng Motor Group Co Ltd , up by 1.2%.
** The three biggest H-shares percentage decliners were China Tower Corp Ltd, down 2.04%, China Cinda Asset Management Co Ltd, fell 1.9% and CITIC Ltd, lost 1.8%.
** As of 04:18 GMT, China’s A-shares were trading at a premium of 29.92% over the Hong Kong-listed H-shares.
Reporting by Luoyan Liu and John Ruwitch; Editing by Shounak Dasgupta