* Shanghai Composite falls 0.3 pct, CSI300 down 0.4 pct
* Hong Kong’s Hang Seng loses 0.7 percent
* U.S. and China tariffs took effect Thursday at 0401 GMT
* Li & Fung plunges after profit fall
SHANGHAI, Aug 23 (Reuters) - China stocks fell on Thursday morning in relatively thin trade ahead of the imposition of the latest round of tariffs by the United States and China on each other’s goods, which went into effect at 0401 GMT on Thursday.
** The U.S. and China set additional tariffs of 25 percent on $16 billion worth of each other’s goods on Thursday, marking a new escalation in an acrimonious trade war between the world’s two largest economies.
** China’s commerce ministry said that China resolutely opposes the latest U.S. tariffs, and that it would file a complaint to the WTO against the tariffs.
** The imposition of tariffs comes amid two days of talks between lower-level U.S. and Chinese officials to find a way out of the deepening trade conflict.
** At the midday break, the Shanghai Composite index was down 9.21 points, or 0.34 percent, at 2,705.40.
** About 5.13 billion shares were traded on the Shanghai exchange, just 37.8 percent of the market’s 30-day moving average of 13.57 billion shares. The volume traded was 9.37 billion as of the last full trading day.
** China’s blue-chip CSI300 index was down 0.44 percent, with its financial sector sub-index lower by 0.27 percent, the consumer staples sector down 0.4 percent, the real estate index down 1.97 percent and healthcare sub-index down 0.18 percent.
** Chinese H-shares listed in Hong Kong fell 0.6 percent at 10,785.35, while the Hang Seng Index was down 0.72 percent at 27,727.06.
** Shares of Li & Fung Ltd hit a six-week low after the sourcing group posted a sharp fall in H1 profit and said it saw a challenging environment from retailers’ destocking and store closures pressuring turnover.
** Developer Sino-Ocean also plunged to a one-year low after it reported a 12.7 percent year-on-year decline in first-half profit.
** But Xiaomi Inc rose as much as 7.2 percent to HK$18.96 after the newly listed handset maker delivered better-than-expected maiden results since its listing in early July.
** The smaller Shenzhen index was down 0.14 percent and the start-up board ChiNext Composite index was higher by 0.29 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.41 percent while Japan’s Nikkei index was up 0.10 percent.
** The yuan was quoted at 6.8730 per U.S. dollar, 0.5 percent weaker than the previous close of 6.8388.
** The largest percentage gainers in the main Shanghai Composite index were Silvery Dragon Prestressed Materials Co Ltd Tianjin up 10.08 percent, followed by Anhui Great Wall Military Industry Co Ltd gaining 10.02 percent and Milkyway Chemical Supply Chain Service Co Ltd up by 10 percent.
** The largest percentage losses in the Shanghai index were Shanghai LongYun Advertising & Media Co Ltd down 10 percent, followed by Shangying Global Co Ltd losing 9.99 percent and Gansu Gangtai Holding Group Co Ltd down by 9.97 percent.
** So far this year, the Shanghai stock index is down 17.92 percent, while China’s H-share index is down 7.3 percent. Shanghai stocks have declined 5.62 percent this month.
** The top gainers among H-shares were Sinopharm Group Co Ltd up 2.07 percent, followed by Ping An Insurance Group Co of China Ltd gaining 1.99 percent and Shenzhou International Group Holdings Ltd up by 1.51 percent.
** The three biggest H-shares percentage decliners were Byd Co Ltd which has fallen 3.34 percent, PICC Property and Casualty Co Ltd which has lost 3.1 percent and Guangzhou Automobile Group Co Ltd down by 2.7 percent.
** As of 04:08 GMT, China’s A-shares were trading at a premium of 15.87 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 11.75 as of the last full trading day while the dividend yield was 2.8 percent.
** So far this week, the market capitalisation of the Shanghai stock index has risen by 1.81 percent to 28.86 trillion yuan.
** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares dipped 0.8 percent, while the IT sector was flat. The top gainer on the Hang Seng was WH Group Ltd up 2.16 percent, while the biggest loser was AAC Technologies Holdings Inc which was down 3.23 percent.
Reporting by Andrew Galbraith; Editing by Gopakumar Warrier