* SSEC 0.4 pct, CSI300 0.2 pct, HSI -0.3 pct
* HK->Shanghai Connect daily quota used 0.1 pct
* Shanghai->HK daily quota used 0.4 pct
* FTSE China A50 -0.2 pct, BNY Mellon ADR China Select Index -1.7 pct
SHANGHAI, June 22 (Reuters) - Shanghai stocks hit a fresh two-year low before rising slightly on Friday morning, as investors remained on guard for a potential full-blown trade war between China and the United States. ** The CSI300 index was up 0.16 percent to 3,598.67 at the end of the morning session, while the Shanghai Composite Index gained 0.4 percent to 2,885.97. ** U.S. Commerce Secretary Wilbur Ross said on Thursday the United States needs to make it harder for its trading partners to have high trade barriers in order to achieve President Donald Trump’s ultimate goal of lower tariffs and a level-playing field. ** Stepping up its war of words with the United States, Chinese state media said U.S. protectionism is self-defeating and a “symptom of paranoid delusions” that must not distract China from its path to modernisation. ** Chinese oil buyers will keep taking crude from the United States through September, but plan to reduce future purchases to avoid a likely import tariff amid a trade spat between the world’s two largest economies, multiple industry sources said. ** In Hong Kong, the Hang Seng index dropped 0.3 percent, to 29,217.28, while the Hong Kong China Enterprises Index lost 0.5 percent to 11,304.46. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.03 percent while Japan’s Nikkei index was down 1.07 percent. ** The yuan was quoted at 6.5035 per U.S. dollar, 0.15 percent weaker than the previous close of 6.494. ** The largest percentage gainers in the main Shanghai Composite index were Aurora Optoelectronics Co Ltd up 10.14 percent, followed by Liuzhou Iron & Steel Co Ltd gaining 10.05 percent and Shenyang Jinbei Automotive Co Ltd up by 10.05 percent. ** The largest percentage losses in the Shanghai index were Zhongzhu Healthcare Holding Co Ltd down 10.02 percent, followed by Neway Valve Suzhou Co Ltd losing 10 percent and Guangzhou Yuetai Group Co Ltd down by 10 percent. ** The top gainers among H-shares were Byd Co Ltd up 3.09 percent, followed by Haitong Securities Co Ltd gaining 1.34 percent and New China Life Insurance Co Ltd up by 1.3 percent. ** The three biggest H-shares percentage decliners were Air China Ltd which has fallen 2.34 percent, Huatai Securities Co Ltd which has lost 2.3 percent and PetroChina Co Ltd down by 2.2 percent. ** About 7.56 billion shares have traded so far on the Shanghai exchange, roughly 55.9 percent of the market’s 30-day moving average of 13.51 billion shares. The volume traded was 15.44 billion as of the last full trading day. ** As of 04:04 GMT, China’s A-shares were trading at a premium of 21.05 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and below its 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 12.53 as of the last full trading day while the dividend yield was 2.7 percent.
Reporting by Luoyan Liu and John Ruwitch; Editing by Gopakumar Warrier