* HK->Shanghai Connect daily quota used -4%, Shanghai->HK daily quota used -0.9% * HSI -1.3%, HSCE -1.7%, CSI300 -1.0% * FTSE China A50 -0.6% March 23 (Reuters) - Hong Kong shares closed lower for a third straight session on Tuesday, dragged down by consumer discretionary and material stocks, as western sanctions against China weighed on investor sentiment. ** The Hang Seng index fell 1.3%, to 28,497.38, while the China Enterprises Index lost 1.7%, to 11,111.18. ** The United States, the European Union, Britain and Canada imposed sanctions on Chinese officials on Monday for human rights abuses in Xinjiang, and Beijing hit back immediately with broad punitive measures against the EU. ** The Hang Seng consumer discretionary index and the Hang Seng materials index fell the most, down 4% and 5.6%, respectively. ** Tech firms, which are sensitive to Sino-U.S. relations, also dropped, with the Hang Seng tech index closing down 2.5%. ** Curbing investor sentiment further, shares of Chinese e-cigarette makers slumped as Beijing plans to tighten regulations. Smoore International Holdings Ltd tumbled as much as 39.3% before ending 27.2% lower. ** Baidu made a tepid debut in its Hong Kong secondary stock listing, bucking a trend of first-day pops on the bourse, as investors were wary of a fundraising flurry in the city and questioned the search company’s growth plans. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.66%, while Japan’s Nikkei index closed down 0.61%. ** The yuan was quoted at 6.5113 per U.S. dollar at 08:15 GMT, 0.04% weaker than the previous close of 6.5084. ** At close, China’s A-shares were trading at a premium of 34.51% over Hong Kong-listed H-shares. (Reporting by the Shanghai Newsroom; Editing by Subhranshu Sahu)