* HK->Shanghai Connect daily quota used -1.9%, Shanghai->HK daily quota used 0.1%<\/p>\n
* FTSE China A50 flat<\/p>\n
BEIJING\/SHANGHAI, March 4 (Reuters) – Chinese shares dropped on Thursday, with the blue-chip index declining the most in more than seven months, as investors dumped consumer and materials stocks on concerns over high valuations.<\/p>\n
** The Shanghai Composite index was down 2.05% at 3,503.49, while the blue-chip CSI300 index was down 3.15%, its biggest one-day drop since January 2020. ** The bluechip\u2019s consumer staples sub-index slid 4.91%, while the material sub-index fell 4.82%. ** Tech shares were also sold off during the day, with the start-up board ChiNext Composite index falling 4.87% and Shanghai\u2019s tech-focused STAR50 index down 2.59%. ** Investors are rotating out of consumer, new energy and tech shares due to valuation concerns, and adding positions in undervalued property, banking and insurance stocks, said Yang Delong, investment manager at First Seafront Fund Management Co. ** \u201cGrowing mutual fund redemptions amid market declines also worsen the sentiment, it\u2019s not easy to turn it around,\u201d said Zhang Qi, an analyst with Haitong Securities Co. ** The smaller Shenzhen index was down 2.9%. ** Chinese equities have come under pressure on worries around policy tightening, and investors now eye the parliamentary session that will chart a course for economic recovery and unveil a five-year plan to fight stagnation. ** Foreign investors were net sellers of Chinese A-shares through the Stock Connect, with Refinitiv data showing large outflows through the programme\u2019s northbound leg. ** Around the region, MSCI\u2019s Asia ex-Japan stock index was weaker by 1.72%, while Japan\u2019s Nikkei index closed down 2.13%.<\/p>\n