* SSEC 0.2%, CSI300 0.0%, HSI -0.3% * HK->Shanghai Connect daily quota used 6.8%, Shanghai->HK daily quota used 0.3% * FTSE China A50 -0.1% SHANGHAI, May 27 (Reuters) - China stocks firmed on Thursday, hovering near a three-month high, as subdued industrial data calmed worries over policy tightening, while some positive signs on Sino-U.S. relations further boosted sentiment. ** The CSI300 index was unchanged at 5,322.40 at the end of the morning session, while the Shanghai Composite Index gained 0.2% to 3,599.81, its highest since Feb. 24. ** Analysts and traders said a series of recent soft economic data helped assuage policy tightening fears which had weighed on valuations of equities and risk appetite. ** Data showed earnings at China’s industrial firms grew at a slower pace in April, with high commodity prices and weaker performance in the consumer goods sector limiting overall profitability from manufacturing. ** “Micro liquidity conditions have improved in the A-share market, with the launch of new mutual funds picking up,” said Yan Kaiwen, an analyst with China Fortune Securities. ** Yan added the strong stock rally would further attract more money inflows via the mutual funds in June, forecasting the Shanghai index to test the 3,800-point level this year. ** So far this week, CSI300 gained 3.7%, while SSEC advanced 3.2%. ** Foreign inflows continued to prop up the market thanks in part to a buoyant yuan touching a three-year high. ** Investors purchased a net 8.3 billion yuan ($1.30 billion) worth of A-shares through the Stock Connect linking mainland and Hong Kong, according to Refinitiv data. ** Market participants also kept an eye out on the latest headlines on Sino-U.S. relations. ** China and the United States agreed that the development of bilateral trade is very important, China’s commerce ministry said, adding that both sides exchanged views on issues of mutual concern. ** The Hang Seng index dropped 0.3%, to 29,078.02, while the Hong Kong China Enterprises Index lost 0.4%, to 10,810.55. ($1 = 6.3861 Chinese yuan renminbi) (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Rashmi Aich) Our Standards: The Thomson Reuters Trust Principles.