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China stocks slip as healthcare firms retreat; Hong Kong up

* SSEC -0.2%, CSI300 -0.2%, HSI 0.1%

* HK->Shanghai Connect daily quota used 4.4%, Shanghai->HK daily quota used 2.2%

* FTSE China A50 -0.1%

SHANGHAI, May 28 (Reuters) - China shares ticked lower on Thursday, dragged down by losses in the healthcare sector as drugmakers retreated on concerns over a plunge in medicine prices.

** The CSI300 index fell 0.2% to 5,137.37 points at the end of the morning session, while the Shanghai Composite Index lost 0.2% to 3,561.01 points.

** Leading the declines, the CSI300 healthcare index slumped 2.6% by the midday break after price slumps were shown in the results of the fifth national government-backed drug bulk-buy program.

** Hengrui, Guangzhou Kingmed Diagnostics Group Co Ltd, Asymchem Laboratories Tianjin Co Ltd , Bloomage Biotechnology Corp Ltd declined between 4.1% and 6.8%.

** Average price cut was 56% among the 251 products for 61 types of medicines included in the list of preliminary bid winners, state news agency Xinhua said in a report.

** Investors need to pay more attention to drugmakers’ overall strength given a normalised bulk-buy mechanism, TF Securities said in a report, adding that bigger-than-expected price declines would be a risk for firms going forward.

** China’s monthly producer price index (PPI) is likely to rise 10% in June, piling pressure on downstream consumers, a senior official of China’s banking and insurance watchdog told a forum in Beijing on Thursday.

** On Wednesday, two Federal Reserve officials said a period of high inflation in the United States could last longer than anticipated, just a day after Fed Chair Jerome Powell played down rising price pressures.

** The Biden administration ordered a ban on U.S. imports of a key solar panel material from Chinese-based Hoshine Silicon Industry Co over forced labour allegations, said two sources briefed on the matter.

** Hoshine Silicon tumbled 9.9% after the U.S. ban.

** The Hang Seng index added 0.1% to 28,838.96 points, while the Hong Kong China Enterprises Index gained 0.1%, to 10,679.86. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Aditya Soni)

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