* SSEC -0.1%, CSI300 -0.71%
* Distillers lead losses; consumer staples index down 3.01%
* Analysts highlight policy tightening risk to equity
SHANGHAI, April 7 (Reuters) - China's main equity gauges
fell on Wednesday with consumer firms dragging the market lower,
as investors continued to worry that strong economic data could
lead to possible policy tightening.
** At the close, the Shanghai Composite index was down
0.1% at 3,479.63.
** The blue-chip CSI300 index was down 0.71%, with the
consumer staples sector down 3.01% after rallying
nearly 6.5% last week. The financial sector sub-index
slid 0.39%, and the healthcare sub-index
** The three biggest drags on the CSI300 index were all
distillers. Kweichow Moutai Co Ltd dropped 3.06%,
Wuliangye Yibin Co Ltd fell 4.89% and Luzhou Laojiao
Co Ltd dropped 6.11%.
** The smaller Shenzhen index ended down 0.36% and the
start-up board ChiNext Composite index was weaker by
** Foreign investors were slight net sellers of A-shares on
Wednesday, with Refinitiv data indicating outflows from the
Shanghai Stock Exchange via the Stock Connect programme through
** Analysts say that strong economic data could prompt
authorities to tighten policy, putting pressure on equity
** "We can't rule out the possibility that policymakers may move
as early as late this year to tighten monetary policy,
potentially triggering knock-on effects in both the real economy
and financial markets," Christina Zhu, economist at Moody's
Analytics said in a note.
** Around the region, MSCI's Asia ex-Japan stock index
was weaker by 0.27%, while Japan's Nikkei index
closed up 0.12%.
** At 07:21 GMT, the yuan was quoted at 6.5434 per
U.S. dollar, 0.04% weaker than the previous close of 6.5409.
** So far this year, the Shanghai stock index is up 0.2% and the
CSI300 has fallen 2.1%, while China's H-share index listed in
Hong Kong is up 3%. Shanghai stocks have risen 1.1% this month.
(Reporting by Andrew Galbraith; Editing by Shailesh Kuber)