* SSEC falls 0.8%, CSI300 0.8% lower, HSI slips 0.3%
* USTR, Treasury say China pursuing ‘blame game’ on trade talks breakdown
* China May factory activity shows recovery still patchy -Caixin PMI
SHANGHAI, June 4 (Reuters) - China and Hong Kong stocks declined on Tuesday, as worries persisted over an escalating Sino-U.S. trade war and the country’s economic momentum.
** The CSI300 index fell 0.8% to 3,601.68 at the end of the morning session, while the Shanghai Composite Index also lost 0.8% to 2,865.67.
** The Hang Seng index dropped 0.3% to 26,804.81, while the Hong Kong China Enterprises Index lost 0.6% to 10,366.30.
** U.S. President Donald Trump’s administration said on Monday that China was pursuing a “blame game” in recent public statements and a weekend white paper that misrepresented the trade negotiations between the world’s two largest economies.
** China’s factory activity expanded at a steady but modest pace in May, a private survey showed, but analysts say front-loading of exports by firms to the United States to avoid higher tariffs masked underlying weakness in the economy.
** Investors need be patient for the moment, as the market correction since the benchmark Shanghai index hit a 15-month high of 3,288.45 on April 8 is not sufficient, Haitong Securities wrote in report.
** The internal and external factors could deteriorate in June, as China’s economic data could weaken further, and as there are no signs of easing in Sino-U.S. trade tensions, the brokerage added.
** The brokerage also noted that a correction on Wall Street will curb global risk appetite and accelerate foreign outflows.
** The Nasdaq tumbled 1.6% on Monday, confirming a correction as it was dragged down by Alphabet, Facebook and Amazon.com on fears the companies are the targets of U.S. government antitrust regulators.
** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.22% while Japan’s Nikkei index was down 0.09%.
** The yuan was quoted at 6.908 per U.S. dollar, 0.07% weaker than the previous close of 6.903.
** The biggest percentage gainers on the main Shanghai Composite index were Heilongjiang Transport Development Co Ltd , up 10.13%, followed by Longjian Road & Bridge Co Ltd, up 10.1% and Changyuan Group Ltd, up 10.09%.
** The largest percentage losers on the Shanghai index were Gansu Dunhuang Seed Group Co Ltd, down 10.04%, followed by Shanghai Industrial Development Co Ltd, losing 10.02% and Wanxiang Doneed Co Ltd, down by 10.02%.
** So far this year, the Shanghai stock index is up 15.89%, while China’s H-share index is up 3.0%.
** The top gainers among H-shares were China Tower Corp Ltd , up 3.28%, followed by China Resources Land Ltd , gaining 1.26% and Hengan International Group Company Ltd, up by 1.21%.
** The three biggest H-shares percentage decliners were CSPC Pharmaceutical Group Ltd, which has fallen 3.98%, Guangzhou Automobile Group Co Ltd, which has lost 2.7% and Anhui Conch Cement Co Ltd, down by 2.5%.
** As of 0419 GMT, China’s A-shares were trading at a premium of 27.15% over the Hong Kong-listed H-shares.
Reporting by Luoyan Liu and John Ruwitch; Editing by Rashmi Aich
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