SHANGHAI, Jan 10 (Reuters) - China stocks on Tuesday snapped a six-session winning streak, as some investors booked profits on doubts over the sustainability of the market's recent rebound.
** China's blue-chip CSI 300 Index closed up 0.1%, while the Shanghai Index lost 0.2% after rising in previous six sessions.
** Hong Kong's Hang Seng Index and the Hang Seng China Enterprises Index declined 0.3% each.
** The CSI 300 has rebounded roughly 15% since November on bets around economic reopening in China. In a policy U-turn, the country dropped its zero-COVID policy in early December.
** Other Asian shares fell following hawkish comments from two U.S. Federal Reserve officials overnight, with investors turning cautious ahead of key inflation data due this week.
** "It's unlikely that fundamentals and policies will improve significantly as the Spring Festival will arrive soon," Guosheng Securities said in a note, adding that it's better to accumulate lower-valued companies rater than chasing high-flying stocks at current stage.
** The market is shifting from "expectation-driven" to "fundamental-driven", they said.
** China's week-long Spring Festival holiday starts on Jan 21.
** Chinese fund managers had warned the next wave of market gains will be less broad-based, instead they will pay more attention to companies' fundamentals going forward.
** In China, trading was mixed, with semiconductors and automobiles up 1.1% and 2.9%, respectively, while banks lost 1.2%.
** Tech giants listed in Hong Kong, meanwhile, edged down 0.3%.
** Morgan Stanley analysts said in a note, "We believe the market is under-appreciating the far-reaching ramifications of reopening and the possibility that a robust cyclical recovery can occur despite lingering structural headwinds."
** "2023 will be a year for China equities to lead global market performance, in our view, with the momentum likely more concentrated in the 1H of the year." (Reporting by Shanghai Newsroom; editing by Uttaresh.V)
