SHANGHAI, June 24 (Reuters) - Mainland China stocks ended lower on Monday, with a key benchmark finishing at the lowest level in nearly four months, as investors cautiously awaited key economic data at home and other U.S. indicators that will help shape Federal Reserve policy expectations.

** Trade frictions remained another key focus of the markets. Beijing wants the European Union to scrap its preliminary tariffs on Chinese electric vehicles by July 4, China's state-controlled Global Times reported, after an agreement by both sides to hold new trade talks.

** "Market valuation has reflected the weak fundamentals of the economy, and stocks and the yuan are likely to consolidate at current levels awaiting more data and policy measures," said Nie Wen, an economist at Hwabao Trust.

** China is due to release May industrial profits on Thursday and June manufacturing survey on Sunday, while traders will also focus on the U.S. personal consumption expenditures (PCE) price index, which serves as the Federal Reserve's favoured gauge of inflation - due on Friday.

** At the close, the Shanghai Composite index was down 1.17% at 2,963.10 points, the lowest closing level since Feb. 28.

** The blue-chip CSI300 index was down 0.54% at 3,476.81 points, the lowest close since April 12. The losses were led by the real estate sector, with a sub-index tracking the industry ending down 2.36%.

** The smaller Shenzhen index ended down 2.29% and the start-up board ChiNext Composite index was weaker by 1.387%.

** The Hang Seng index ended roughly flat at 18,027.71 points, with the Hang Seng China Enterprises index rising 0.02% to 6,441.16 points.

** The sub-index of the Hang Seng tracking energy shares dipped 0.4%, while the IT sector dipped 0.57%, the financial sector ended 0.2% higher and the property sector dipped 0.11%.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.5%, while Japan's Nikkei index closed up 0.54%.

** The yuan was quoted at 7.2618 per U.S. dollar at 0808 GMT, 0.01% weaker than the previous close of 7.2609.

(Reporting by Shanghai Newsroom; Editing by Janane Venkatraman and Sohini Goswami )