* China industrial profits rise in June but uncertainty remains
* China takes over premises of U.S. consulate in Chengdu
SHANGHAI, July 27 (Reuters) - Chinese shares clawed back lost ground on Monday after data showed that China's economic recovery is continuing to build momentum, but heightened Sino-U.S. tensions kept gains in check.
** At the close, the Shanghai Composite index was up 0.26% at 3,205.23 and the blue-chip CSI300 index was up 0.51%. ** Industrial firms' profits rose for a second straight month in June and at the fastest pace in more than a year, adding to signs that an economic recovery from the coronavirus crisis is gaining momentum, but officials warned of continued uncertainty.
** After a record slump early in the year, China's economy rebounded more than expected in the second quarter as virus lockdown measures ended and policymakers ramped up stimulus.
** China on Monday said it had taken over the premises of the U.S. consulate in the southwestern city of Chengdu after ordering the facility be shut in retaliation for being ousted from the Chinese consulate in Houston, Texas. ** The announcement that China would force the U.S. consulate to close had battered shares on Friday, sending the benchmark Shanghai Composite index 3.9% lower and the blue-chip CSI300 index 4.4% lower. ** The smaller Shenzhen index ended up 0.28% and the start-up board ChiNext Composite index was higher by 0.149%. The index tracking the 50 most representative stocks on Shanghai's STAR market fell 1.06%. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.76%, while Japan's Nikkei index closed down 0.16%. ** At 0712 GMT, the yuan was quoted at 6.9988 per U.S. dollar, 0.26% firmer than the previous close of 7.017. ** So far this year, the Shanghai stock index is up 5.1% and the CSI300 has risen 10.5%, while China's H-share index listed in Hong Kong is down 9.7%. Shanghai stocks have risen 7.39% this month. ** As of 0714 GMT, China's A-shares were trading at a premium of 31.77% over the Hong Kong-listed H-shares. (Reporting by Andrew Galbraith, Editing by Sherry Jacob-Phillips)