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Staff of Reuters 2 Minute Read* The HK->Shanghai Connect daily quota was used 3.2 percent of the time, while the Shanghai->HK daily quota was used 2.6 percent of the time. The FTSE China A50 is down 0.3%. (Reuters) – SHANGHAI, July 6 (Reuters) – On Tuesday, China’s blue-chip index fell to a near two-month low as healthcare firms fell due to concerns over high valuations. ** At the close of the morning session, the CSI300 index slid 0.6 percent to 5,055.65, while the Shanghai Composite Index fell 0.5 percent to 3,515.64. * * The CSI300 healthcare index, which fell the most, fell 5.1 percent, putting it on course for its lowest day since March 8. * * Shanghai Fosun Pharmaceutical Group Co Ltd, Aier Eye Hospital Group Co Ltd, Beijing Tongrentang Co Ltd, and Wuxi AppTec Co Ltd all fell 14.2 percent, while Shanghai Fosun Pharmaceutical Group Co Ltd, Aier Eye Hospital Group Co Ltd, Beijing Tongrentang Co Ltd, and Wuxi AppTec Co Ltd all fell between 7.2 percent and 10%. * “Many healthcare firms’ growth rates could not support their current high valuations,” said Yan Kaiwen, an analyst with China Fortune Securities. Yan added that some investors shifted to cheaper, more stable growth sectors, such as developers. The CSI300 real estate index rose 3.4 percent, with bellwether Vanke up 3.4 percent. * The Hang Seng index in Hong Kong fell 0.6 percent to 27,980.23, while the Hong Kong China Enterprises Index down 0.4 percent to 10,232.91.** The Hang Seng tech index fell 1.4 percent as antitrust concerns remained. Three individuals familiar with the situation told Reuters that China’s antitrust regulator is expected to formally ban Tencent Holdings Ltd’s attempt to unite the country’s top two videogame streaming sites, Huya and DouYu. ** Tencent’s stock increased by 0.5 percent. Carrie Lam, the leader of Hong Kong, warned on Tuesday that “ideologies” constituted a threat to national security, and she encouraged parents, schools, and religious leaders to monitor youths’ behavior and report those who disobey the law to the authorities. (Luoyan Liu and Andrew Galbraith contributed reporting; Uttaresh.V edited the piece.)/nRead More

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