* Gains in Shanghai stocks led by Hubei Zhenhua Chemical Co Ltd and losses by Henan Yinge Industrial Investment Co Ltd
* China’s A-shares are at a 16.93 percent premium over H-shares
SHANGHAI, June 11 (Reuters) - Shanghai stocks closed lower for a third straight session on Monday, on investor concerns over the liquidity conditions in the market. ** The Shanghai Composite Index touched its lowest level since last May before closing down 0.5 percent at 3,052.78 points, while the blue-chip CSI300 index was unchanged at 3,779.98 points. “We have seen a correction in the stock market for the past weeks due to concerns over liquidity conditions,” Changjiang Securities wrote in a report. ** The macro liquidity environment in June remains tight as a whole, and the implementation of the China Depository Receipts (CDRs) policy could also increase pressure on liquidity in the market, the brokerage added. ** China issued final rules on CDRs on Wednesday, allowing overseas-domiciled Chinese technology firms to file a domestic listing application immediately. ** There were worries that the listings of those “unicorns” could be a drain on the already tight liquidity in the market, amid a wave of bond defaults by listed firms, as Beijing continues to crack down on risky financing. ** Investors also started to focus on key central bank meetings later this week. ** The U.S. Federal Reserve holds a two-day meeting starting June 12, and is widely expected to raise interest rates for the second time this year. The focus is on whether the central bank will hint at raising rates a total of four times in 2018. ** The European Central Bank meets on June 14, when it could signal its intention to start unwinding its massive bond purchasing programme. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.35 percent, while Japan’s Nikkei index closed up 0.48 percent. ** At 07:10 GMT, the yuan was quoted at 6.4016 per U.S. dollar, 0.12 percent firmer than the previous close of 6.409. ** The largest percentage gainers on the main Shanghai Composite index were Hubei Zhenhua Chemical Co Ltd up 10.03 percent, followed by Zhejiang Meilun Elevator Co Ltd gaining 10.03 percent and Tanyuan Technology Co Ltd up by 10.02 percent. ** The largest percentage losers on the Shanghai index were Henan Yinge Industrial Investment Co Ltd down 9.96 percent, followed by Gem-Year Industrial Co Ltd losing 9.76 percent and Tongwei Co Ltd down by 9.53 percent. ** So far this year, the Shanghai stock index has fallen 7.7 percent, the CSI300 is down 6.2 percent while China’s H-share index listed in Hong Kong is up 4.1 percent. Shanghai stocks have declined 1.39 percent this month.
** As of 07:11 GMT, China’s A-shares were trading at a premium of 16.93 percent over the Hong Kong-listed H-shares. (Reporting by Shanghai Newsroom; Editing by Biju Dwarakanath)