Chinese stocks plunge on weak industrial data; STAR market rallies

* HSEC -0.1%, CSI300 -0.1%, HSI -1.2%

* HK-> daily quota of Shanghai Connect used -1.7%, Shanghai-> daily quota of HK used 2.2%

* FTSE China A50 -0.1%

SHANGHAI, July 29 (Reuters) – Chinese stocks fell on Monday after unreliable data fueled fears that the slowdown in the manufacturing sector resulting from a deadly trade war would weigh on economic growth, while investors had low expectations in future Sino-US trade negotiations.

** Investors were cautious as they were likely to expect US interest rates to fall this week, depending on whether or not Federal Reserve signals are being considered.

** The CSI300 index fell 0.1% to 3,854.24 points late morning, while the Shanghai Composite Index lost 0.1% to 2,940.50 points.

** China's industrial profits have declined since the second half of 2018, due to the slowing economy and the intensification of the trade dispute between the United States and China. Many industrial companies have postponed their decisions and cut back on investment in the manufacturing sector.

** US and Chinese trade negotiators will gather in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough.

** Shares are coming together at all levels in the newly launched Chinese STAR market inspired by Nasdaq.

** The 25 STAR-listed companies posted gains, led by Beijing Worldia Diamond Tools, which jumped the all-time high of 20%, reaching a record high.

** Beijing policy will focus on the smooth operation of the STAR market in the initial phase of STAR market, while preventing a collapse of the main board of directors will also be one of the government's objectives in maintaining stability (in the markets). , Tebon Securities noted in the report.

** In Hong Kong, stocks hit a trough of more than a month in the midst of turmoil.

** The Hang Seng index fell 1.2% to 28,056.83 points, while the China Hong Kong business index lost 0.9% to 10,759.08 points.

** The Hong Kong police clashed with thousands of protesters on Sunday as it sought to defend China's main representative office from crowds of people facing what many see as a growing cycle of violence against them. .

** In the past two months, protests led by anti-government activists against a bill allowing extradited people to appear in court in mainland China have become increasingly violent.

** Across the region, the MSCI Asia-Japan ex-Japan stock index was 0.47% lower, while Japan's Nikkei index lost 0.39%.

** The yuan was quoted at 6.8934 for one US dollar, 0.19% lower than the previous close of 6.88.

** The top percentages of winners in the main Shanghai Composite Index were Tanyuan Technology Co Ltd (+ 9.99%), followed by Zhejiang Tony Electronic Co Ltd (+ 9.99%) and Chongqing Construction Engineering Group Co Ltd (+ 9.94%).

** The largest percentage losses of the Shanghai index were FUREN Pharmaceutical Group Co Ltd, down 10.05%, followed by BOMESC Offshore Engineering Co Ltd, down 8.62% and Shaanxi Construction Machinery Co Ltd, down 6.91%.

** The companies whose H shares increased the most were China National Building Materials Co Ltd (+ 1.13%), followed by Guangdong Investment Ltd (+ 1.1%) and Shenzhou International Group Holdings Ltd (+ 1, 09%).

** The three largest decreases in percentage of H shares were CITIC Securities Co Ltd, down 2.59%, Industrial and Commercial Bank of China Ltd, down 2.5%, and Haitong Securities Co Ltd, down 2.2%.

** Approximately 7.42 billion shares have been traded on the Shanghai Stock Exchange to date, representing approximately 41.1% of the 30-day moving average market, or 18.06 billion shares per day. The volume traded was $ 13.93 billion on the last trading day.

** At 0416 GMT, China A shares traded at a premium of 29.21% on H shares listed in Hong Kong.