* SSEC -1.0%, CSI300 -1.3%, HSI -0.8%
* HK->Shanghai Connect daily quota used -3.4%, Shanghai->HK daily quota used 0.8%
* FTSE China A50 -1.5%
SHANGHAI, June 29 (Reuters) - China stocks fell on Tuesday as investors booked profit after a rally, with financial and consumer firms leading the retreat.
** The CSI300 index fell 1.3% to 5,185.65 by the end of the morning session, while the Shanghai Composite Index lost 1.0% to 3,572.27.
** The retreat came after the blue-chip CSI300 index rose for the fifth straight session on Monday.
** The CSI300 financials index declined 1.3%, while the CSI300 consumer staples index dropped 2.1%.
** China will make its monetary policy flexible, targeted and appropriate, while keeping interbank liquidity reasonable, the central bank said on Monday, as authorities seek to consolidate a post-COVID-19 economic recovery.
** China's economy has staged a strong rebound from the impact of the COVID-19 pandemic, with Chinese exporters racing ahead to fill global demand bolstering the vast industry sector, but the recovery in the consumer end has been weak.
** "The net injection by the PBOC was to smooth liquidity across quarters and the PBOC would probably go back to drain short-term liquidity, while large inflows via the Stock Connect are unsustainable against a backdrop of a stronger dollar," said Yan Kaiwen, an analyst with China Fortune Securities.
** Yan said it's a bull market for growth stocks driven mainly by loose liquidity, and any signs of change in liquidity conditions could lead to large fluctuations in the market.
** Shares in China's leading battery maker CATL hit an all-time high, after the company extended a battery supply deal with Tesla Inc to 2025.
** According to Refinitiv data, investors via the Stock Connect linking mainland and Hong Kong sold net 2.6 billion yuan