HONG KONG, Jan 8(Reuters) - China and Hong Kong stocks

fell on Wednesday, led by declines in the chip and consumption

sectors, as geopolitical tensions and economic uncertainties

kept sentiment subdued.

** At the midday break, China's blue-chip CSI300 index

was down 1.5%, and the Shanghai Composite index weakened

1.46% to 3,182.48 points.

** In Hong Kong, the benchmark Hang Seng Index dropped 1.6%,

extending its decline to a third consecutive day and reaching

its lowest point since late September.

** Leading the decline onshore, shares of semiconductor firms

tumbled 3.3%, giving up most of the gains made on

Tuesday after the U.S. Defense Department expanded the list of

firms allegedly aiding Beijing's military.

** Shares of chipmaker Semiconductor Manufacturing International

Corporation shed 4.7% to a nearly three-week low and

peer Hua Hong Semiconductor lost 4.3%.

** China's consumption sector fell 1.3% despite

Beijing's latest measures to expand scope of consumer trade-ins.

** "A combination of an escalation in U.S.-China tensions,

looming tariff uncertainty stemming from the incoming U.S.

administration, and likely muted policy actions from China ahead

of the March NPC suggests that Chinese equities will likely go

through a volatile period until policy delivery materializes,"

analysts at Goldman Sachs said in a note on Wednesday.

** Around the region, MSCI's Asia ex-Japan stock index

was weaker by 0.60% while Japan's Nikkei index

was down 0.13%.

** Chinese ADRs fell 0.2% overnight.

** The yuan was quoted at 7.3316 per U.S. dollar,

0.04% weaker than the previous close of 7.3284.