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China stocks slip, but set to post monthly gains

* SSEC -0.1%, CSI300 -0.2%, HSI 0.0%

* HK->Shanghai Connect daily quota used -2.7%, Shanghai->HK daily quota used 5.2%

* FTSE China A50 -0.2%

SHANGHAI, Oct 30(Reuters) - China stocks fell on Friday as investors sold food & beverage stocks following slower profit growth in the third quarter, although they were on track to post monthly gains based on strength in consumer discretionary and banking stocks.

** The CSI300 index fell 0.2% to 4,761.40 at the end of the morning session, while the Shanghai Composite Index lost 0.1%, to 3,269.45. For the month, the CSI300 was up 3.8% and the SSEC 1.6%.

** The CSI SWS food and beverage index slumped 2.9% on Friday, with bellwether Yili tumbling 10%.

** But consumer discretionary firms provided some support after new energy vehicles’ firms posted robust profits.

** China is targeting sustained and healthy economic development in the five years to 2025, with an emphasis on a higher quality of growth, the official Xinhua news agency said on Thursday, citing the ruling Communist Party’s Central Committee.

** President Xi Jinping and members of the Central Committee, the largest of the ruling party’s elite decision-making bodies, met behind closed doors this week to lay out the 14th five-year plan.

** From the past experience, the market would not see marked movements following such communiques without policy details, said Luo Kun, director of macro strategy center at Chasing Securities.

** Luo also said investors remained cautious ahead of the U.S. election, though he expected marginal impact on the A-share market.

** Leading the gains, the CSI300 consumer discretionary index advanced 11% in October, while heavyweight banking sector jumped 5.7%.

** Analysts expect earnings improvement in China’s banking sector on the back of an economic recovery, which eases pressure on a sector with low valuations.

** China’s economic rebound has been gaining momentum following the sharp COVID-19-driven downturn due to strong exports, pent-up demand and government stimulus. (Reporting by Luoyan Liu and Andrew Galbraith; editing by Uttaresh.V)

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