Shanghai stocks flat after China reiterates no flood of stimulus

* SSEC flat, CSI300 falls 0.9 pct, HSI 0.5 pct lower

* Trump predicts “good deal” or no deal in China trade talks

SHANGHAI, March 7 (Reuters) - Chinese stocks were flat on Thursday at the end of a choppy morning session, after the country’s finance minister reiterated that China would not seek to flood the economy with stimulus, and uncertainty over trade talks with the United States. ** At the midday break, the Shanghai Composite index was down 0.02 percent at 3,101.60. China’s blue-chip CSI300 index was down 0.9 percent. ** Chinese H-shares listed in Hong Kong fell 0.73 percent at 11,507.8, while the Hang Seng Index was down 0.46 percent at 28,904.34. ** In the latest round of comments indicating that China will avoid broad loosening despite a slowing economy, China’s finance minister said on Thursday that a proactive fiscal policy does not mean Beijing will open a floodgate of stimulus, adding that authorities are highly concerned about local government debt risks. ** Also, reinforcing ongoing uncertainty over the prospects for an end to the U.S.-China trade war, U.S. President Donald Trump said on Wednesday that trade talks with China were moving along well and predicted either a “good deal” or no deal between the world’s two largest economies. ** The CSI telecommunication services index ended the morning 0.63 percent lower, dragged down by Huawei suppliers after the Chinese telecom equipment maker confirmed it is suing the U.S. government over a section of a defence bill passed into law last year that restricted its business in the United States. ** The smaller Shenzhen index was down 0.13 percent and the start-up board ChiNext Composite index was weaker by 0.89 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.15 percent, while Japan’s Nikkei index was down 0.80 percent. ** The yuan was quoted at 6.7093 per U.S. dollar, 0.05 percent firmer than the previous close of 6.7125. ** The largest percentage gainers on the main Shanghai Composite index were Wintime Energy Co Ltd, up 10.13 percent, followed by Sichuan Western Resources Holding Co Ltd , gaining 10.12 percent and Qinhuangdao Port Co Ltd , up 10.11 percent. ** The largest percentage losers in the Shanghai index were Joinn Laboratories China Co Ltd, down 6.61 percent, followed by China Fortune Land Development Co Ltd, losing 5.47 percent and Oppein Home Group Inc, down 5.36 percent. ** So far this year, the Shanghai stock index is up 24.39 percent, while China’s H-share index is up 14.5 percent. Shanghai stocks have risen 5.48 percent this month. ** The top gainers among H-shares were ZhongAn Online P & C Insurance Co Ltd, up 4.39 percent, followed by Haitong Securities Co Ltd, gaining 3.01 percent and Shenzhou International Group Holdings Ltd, up by 2.25 percent. ** The three biggest H-shares percentage decliners were China Life Insurance Co Ltd, which has fallen 4.25 percent, Great Wall Motor Co Ltd, which has lost 4.1 percent and SINOPHARM GROUP CO LTD, down by 2.7 percent. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares dipped 0.1 percent while the IT sector fell 1.4 percent. The top gainer on the Hang Seng was Shenzhou International Group Holdings Ltd, up 2.25 percent, while the biggest loser was Geely Automobile Holdings Ltd, which was down 6.95 percent.

Reporting by Andrew Galbraith; Editing by Rashmi Aich