China stocks set for 3rd weekly drop on Sino-West tensions, valuations worries

* SSEC -0.5%, CSI300 -0.6%, HSI +0.6%

* HK->Shanghai Connect daily quota used -2%, Shanghai->HK daily quota used 2.6%

* FTSE China A50 -1.5%

SHANGHAI, June 18 (Reuters) - China stocks were weighed down by consumer and energy firms on Friday and set for their third straight weekly drop on worries over lofty valuations and Sino-West tensions.

** The CSI300 index fell 0.6% to 5,069.32 by the end of the morning session, while the Shanghai Composite Index slipped 0.5% to 3,508.29. Both were down for a fourth session in five.

** Leading the decline on Friday, the CSI300 consumer staples index shed 2.6%, weighed down by liquor makers as investors fretted over high valuations.

** The CSI300 energy index dropped 2.3% as oil prices fell.

** For the week, CSI300 slumped 3% and SSEC lost 2.3%, both set for their worst week since late February.

** Market participants were worried about an end to easy monetary policy as data pointed to a quick recovery in overseas economies, which could weigh on stocks with frothy valuations, said Hu Yunlong, a Beijing-based hedge fund manager.

** The U.S. Federal Reserve on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases.

** Adding to the pressure for the week were tensions between Beijing and the West.

** China denounced on Monday a joint statement by the Group of Seven leaders that had scolded Beijing over a range of issues as a gross interference in the country’s internal affairs.

** Bucking the broad weakness, tech stocks shined in the week on signs of more policy support from Beijing.

** The CSI all-share semiconductors and semiconductor equipment index rose 0.9% to a 10-month high, while Shanghai’s tech-focused STAR50 index jumped 3.4% and was set for a sixth week of gains in a row.

** The Hang Seng index climbed 0.6% to 28,728.14, while the Hong Kong China Enterprises Index gained 0.3% to 10,618.12. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Subhranshu Sahu)