* CSI300 -0.1%, SSEC +0.03%
* China July factory output, retail sales growth disappoint
* China c.bank injects 600 bln yuan through 1-year MLF loans
SHANGHAI, Aug 16 (Reuters) - China blue-chips slipped on Monday after disappointing economic data raised fresh concerns over the outlook for the world's second-largest economy, but expectations of more policy support to bolster a wobbly recovery put a floor under the drop.
** China's factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations, adding to signs the economic recovery is losing momentum. ** At the close, the blue-chip CSI300 index was down 0.1%. The CSI300 industrials sub-index fell 1.11% and the SSE Resource sub-index fell 2.83% on the faltering demand outlook. ** At the same time, China's central bank injected 600 billion yuan ($92.61 billion) in medium-term loans into the financial system on Monday, more than expected, in what many market participants interpreted as an effort to prop up the economy. ** The Shanghai Composite index inched up 0.03% to 3,517.34. ** Investor sentiment around Chinese tech firms also took another hit following a state media commentary on the weekend calling for stronger vetting of online games and "zero tolerance" toward those that distort history. ** The CSI Info Tech sub-index fell 0.32%. ** The smaller Shenzhen index ended 0.63% lower and the start-up board ChiNext Composite index was weaker by 1.307%. ** Around the region, MSCI's Asia ex-Japan stock index was 0.6% weaker, while Japan's Nikkei index closed 1.62% lower. ** At 0707 GMT, the yuan was quoted at 6.4791 per U.S. dollar, 0.04% weaker than the previous close of 6.4767. ** So far this year, the Shanghai stock index is up 1.3% and the CSI300 has fallen 5.2%, while China's H-share index listed in Hong Kong is down 13.8%. Shanghai stocks have risen 3.53% this month.
($1 = 6.4788 Chinese yuan) (Reporting by Andrew Galbraith; Editing by Krishna Chandra Eluri)
