(Corrects to add dropped word in 9th paragraph)
* HK->Shanghai Connect daily quota used 11%, Shanghai->HK daily quota used 5.9%
* FTSE China A50 +0.8%
SHANGHAI, Sept 5 (Reuters) - Hong Kong stocks ended flat in subdued trade on Thursday on some profit booking, after withdrawal of a controversial extradition bill led to sharp gains in the previous session.
** The Hang Seng index ended down 0.03%, or 7.70 points, at 26,515.53, while the China Enterprises Index gained 0.9% to end at 10,384.14.
** Hong Kong leader Carrie Lam said that China “understands, respects and supports” her government’s move to formally withdraw an extradition bill, part of measures she hoped would help the city “move forward” after months of unrest.
** “Throughout the whole process, the Central People’s Government took the position that they understood why we have to do it. They respect my view, and they support me all the way,” said Lam, dressed in a cream suit and looking less tense than a televised appearance the day before.
** Reports of the withdrawal sent the Hang Seng index surging nearly 4% on Wednesday, its best day since late 2018.
** For the day, industrial and materials led the gains as Beijing vowed to boost its economy, while properties dragged on profit-taking.
** China will implement both broad and targeted cuts in the reserve requirement ratio (RRR) for banks “in a timely manner,” China’s cabinet said in a meeting, an indication that a cut in the key ratio aimed at boosting lending could be imminent.
** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.85%, while Japan’s Nikkei index closed up 2.12%.
** The yuan was quoted at 7.1451 per U.S. dollar at 0818 GMT, slightly weaker than the previous close of 7.145.
** The top gainers among H-shares were Guangzhou Automobile Group Co Ltd up 4.86%, followed by Haitong Securities Co Ltd, gaining 4.82% and CITIC Securities Co Ltd , up by 4.18%.
** The three biggest H-shares percentage decliners were Country Garden Holdings Co Ltd, which was down 0.77%, China Shenhua Energy Co Ltd, which fell 0.74% and ENN Energy Holdings Ltd, down by 0.68%.
** At close, China’s A-shares were trading at a premium of 27.80% over Hong Kong-listed H-shares. (Reporting by the Shanghai Newsroom; Editing by Rashmi Aich)