HONG KONG, July 3 (Reuters) - China stocks fell on

Wednesday as data showed the country's services activity growth

hit an eight-month low in June, while technology companies led

Hong Kong shares higher.

China's services activity expanded at the slowest pace in

eight months and confidence hit a four-year low, mainly due to

slower growth in new orders, a private-sector survey showed,

suggesting more stimulus is needed to boost the economy.

Meanwhile, Hong Kong shares fared better, with the Hang Seng

Tech Index jumping 2.5%.

Shares of Alibaba Group ( BABA ) gained 2.5% after the

e-commerce giant said it bought back shares worth $5.8 billion

in the second quarter, its biggest single-quarter stock

repurchase ever. Tencent ( TCTZF ) also jumped 2.8% on share

buyback efforts.

** At the close, the Shanghai Composite index was

down 0.49% at 2,982.38, snapping a three-day winning streak.

** The blue-chip CSI300 index was down 0.24%. The

financial sector sub-index was lower by 0.43%, the

consumer staples sector was down 0.1%, the real

estate index rose 1.11% and the healthcare

sub-index dropped 0.37%.

** The smaller Shenzhen index ended down 0.78% and

the start-up board ChiNext Composite index was weaker by

0.295%.

** In Hong Kong, the Hang Seng index rose 209.43

points, or 1.18%, to 17,978.57. The Hang Seng China Enterprises

index rose 1.27% to 6,455.7.

** The sub-index of the Hang Seng tracking energy shares

rose 0.9%, while the IT sector rose 2.7%, the

financial sector ended 0.28% lower and the property

sector rose 1.97%.

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

was firmer by 0.87%, while Japan's Nikkei index

closed up 1.26%.