China’s blue chips fall mostly in more than 7 months as consumers, stock of products declines

* SSEC -2.1%, CSI300 -3.2%

* HK-> Shanghai Connect daily quota used -1.9%, Shanghai-> HK daily quota used 0.1%

* FTSE China A50 smooth

BEIJING / SHANGHAI, March 4 (Reuters) – Chinese shares fell Thursday, with the blue-chip index declining the most in more than seven months, as investors plunged consumer and commodity stocks on concerns about high valuations.

** Shanghai Composite index fell 2.05% at 3,503.49, while CSI300 blue-index fell 3.15%, the biggest one-day fall since January 2020. ** Consumer staples sub-index slipped. the bluechip 4.91%, while the sub-stock fell 4.82%. ** Technical shares were also sold during the day, with ChiNext Composite’s starting board index falling 4.87% and STAR50’s index with Shanghai’s tech focus down 2.59%. ** Investors are turning out of consumer, new energy and tech sectors as a result of valuation concerns, and placing jobs in underprivileged real estate, banking and insurance, said Yang Delong, manager investment at First Seafront Fund Management Co. ** “Growing mutual funds solutions in the midst of a market downturn reduces the sentiment, it’s not easy to turn around,” said Zhang Qi, an analyst with Haitong Securities Co. ** Shenzhen index was down 2.9%. ** Chinese quotas have come under pressure from concerns about policy tightening, and investors are now watching the parliamentary session chart a course for economic recovery and emerge a five-year plan to combat stagnation. ** Foreign investors were net sellers of Chinese A shares through the Stock Link, with Refinitiv data showing large flows through the program’s northern leg. ** Around the region, the MSCI stock index in Asia outside Japan was weaker by 1.72%, while Japan’s Nikkei index closed down 2.13%.