China's shares continue to collapse, Shanghai is getting closer since January 2016

* Shanghai stocks lower, CSI300 blue index down

* SSEC at the lowest since January 28, 2016

* CSI lowest since August 4, 2016

SHANGHAI, Sept 12 (Reuters) – China's leading stock market index closed Wednesday at its lowest level since January 2016, when China wanted the US to impose $ 7 billion worth of dumping duties.

** The Shanghai Composite Index closed down 0.3% to 2,656.11, its lowest close since January 28, 2016. ** The leading CSI300 index ended lower 0.7% to 3,202.02, its lowest value since August 4, 2016. ** The financial sector sub-index CSI300 fell 0.21%, the consumer staples sector declined by 1.94%, the real estate index of 0.42% and the sub-index of health care 2.84%. ** The smallest index in Shenzhen finished down 0.41% and the ChiNext Composite start chart fell to 0.67%. China told the World Trade Organization that it wanted to impose $ 7 billion a year on sanctions in the United States in retaliation for Washington's non-compliance with a ruling in a dispute over US dumping rights. ** Chinese Vice Premier Hu Chunhua said on Wednesday that countries should "categorically reject" protectionism in trade. ** Bank of England Governor Mark Carney said China's financial system is one of the biggest risks to global financial stability. ** In the region as a whole, the MSCI Asia ex-Japan index was 0.36% lower, while the Japanese Nikkei index closed down 0.27%. ** At 7:14 GMT, the yuan was quoted at 6.872 per dollar, unchanged from the previous closing. ** The largest percentage gains on the Shanghai Composite Index were Will Semiconductor Co Ltd, up 10.01%, followed by Guizhou Guihang Automotive Components Co, which gained 10% and Ningbo Fuda Co, 10% . ** The largest percentage losses in the Shanghai index were recorded by Jinzhou Jixiang Moly Co Ltd, followed by Jonjee Hi-Tech Industrial and Commercial Holding Co Ltd, which lost 5.81% and LBX Pharmacy Chain JSC, of 5.16%. ** So far, the Shanghai stock index has fallen 19.7% this year, the CSI300 20.6% and the China, Hong Kong, 12.7% . Shanghai shares fell 2.54% this month. ** About 9 billion shares were traded on the Shanghai Stock Exchange, about 76% of the 30-day moving average market of 11.83 billion shares a day. ** At 07:15 GMT, Chinese A shares traded at a premium of 21.61% over H shares listed in Hong Kong. ** The Shanghai Stock Index is below its 50-day moving average and 200-day moving average. ** The price / earnings ratio of the Shanghai Index was 11.21 on the last trading day, while the dividend yield was 2.8%. ** So far this week, the market capitalization of the Shanghai Stock Exchange fell 1.34% to 28.39 billion yuan. (Report by Andrew Galbraith, edited by Sai Sachin Ravikumar)