SHANGHAI, June 8 (Reuters) - China stocks fell on Tuesday,
weighed down by consumer and liquor firms, as investors worried
about lofty valuations and Sino-U.S. tensions.
** The blue-chip CSI300 index fell 0.9% to
5,232.12, while the Shanghai Composite Index lost 0.5%
** Falling the most, the CSI300 consumer staples index
dropped 3.4%, while the CSI liquor index
tumbled as much as 8.2% before ending down 6.9%.
** Anhui Yingjia Distillery, Sichuan Swellfun
, Hebei Hengshui Laobaigan Liquor, Jinhui
Liquor and Anhui Golden Seed Winery all
slumped by their 10% daily trade limits.
** Top liquor maker Moutai closed down 3.5%.
** The retreat came as the liquor index neared its record
high hit in mid-February, and after the index gained 12% and
12.5% in May and April, respectively.
** "The price-to-earnings ratios of liquor makers, not
including Moutai and Wuliangye, have reached more than 60
overall, which is way too high despite improvements in their
fundamentals," said Yan Kaiwen, an analyst with China Fortune
** Yan said liquor stocks would face a big correction going
** Meanwhile, U.S. President Joe Biden's order last week
banning U.S. investment in certain Chinese companies is broader
than a similar one signed by his predecessor Donald Trump and
has a lower bar, making it easier to add more companies later.
** U.S. Secretary of State Antony Blinken on Monday
signalled that a possible resumption of trade and investment
talks with Taiwan stalled since the Obama administration, but
gave no indication of any willingness to pursue a full-scale
trade pact that Taipei has been seeking.
** Bucking the broader weakness, Chinese EV maker BYD Co Ltd
and battery maker CATL gained ground on a
report of Apple supply talks.
(Reporting by Luoyan Liu and Andrew Galbraith; Editing by