SHANGHAI, Sept 10 (Reuters) -

China stocks fell on Tuesday and were on track to a fresh

seven-month low, as strong export data failed to allay market

concerns about trade disputes and domestic deflation.

Hong Kong shares gained, thanks to the jump in Alibaba's ( BABA )

Hong Kong shares as it was added to the Stock Connect

Scheme, allowing mainland investors to buy the stock.

China's exports grew at their fastest pace since March 2023

in August, while imports missed forecasts amid weak domestic

demand.

Analysts warn mounting trade barriers are emerging as

another major obstacle despite strong August exports. "The

question is how long exports can stay strong given the weakening

U.S. economy and the rising trade tension," said Zhang Zhiwei,

chief economist at Pinpoint Asset Management.

Shares of biotech firm WuXi AppTec Co Ltd dropped

8.3% in Hong Kong and 4.7% in mainland after the

U.S. House of Representatives on Monday passed a bill that aims

to restrict business with several Chinese biotech companies

including Wuxi Apptec on national security grounds.

At the midday break, the Shanghai Composite index

was down 0.53% at 2,722.01 points.

** China's blue-chip CSI300 index was down 0.52%, with

its financial sector sub-index 0.15% lower, the

consumer staples sector down 0.03%, the real estate

index down 2.63% and the healthcare sub-index

down 1.34%.

** Chinese H-shares listed in Hong Kong rose 0.39% to

6,026.18, while the Hang Seng Index was up 0.28% at

17,244.67.

** The top gainers among H-shares were Alibaba Group Holding Ltd ( BABA )

, up 4.73%, followed by Li Auto Inc ( LI ), gaining

3.76% and New Oriental Education & Technology Group Inc ( EDU )

, rising 2.69%.

** The smaller Shenzhen index was down 1.04%, the

start-up board ChiNext Composite index was weaker by

0.88% and Shanghai's tech-focused STAR50 index was

down 0.8%​.

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

was weaker by 0.03% while Japan's Nikkei index

was up 0.16%.

** The yuan was quoted at 7.118 per U.S. dollar,

0.05% weaker than the previous close of 7.1142.