* SSEC -0.9%, CSI300 -1.2%, HSI -0.8% * HK->Shanghai Connect daily quota used -8.2%, Shanghai->HK daily quota used 1.8% * FTSE China A50 -1.5% SHANGHAI, June 15 (Reuters) - China and Hong Kong stocks fell on Tuesday, as tensions between Beijing and the West soured investor sentiment after G7 leaders called for Hong Kong to keep a high degree of autonomy. ** The CSI300 index was down 1.2% at 5,164.45 points at the end of the morning session, while the Shanghai Composite Index lost 0.9% to 3,557.33 points. ** China denounced on Monday a joint statement by the Group of Seven leaders that had scolded Beijing over a range of issues as a gross interference in the country’s internal affairs, and urged the grouping to stop slandering China. ** NATO leaders warned on Monday that China presents “systemic challenges,” taking a forceful stance towards Beijing in a communique at Joe Biden’s first summit with an alliance that Donald Trump openly disparaged. ** Among the worst performing sectors, the CSI300 Real Estate Index and the CSI A-share resource industries slumped 2.4% and 2.9%, respectively. ** Shares of developers retreated after state media warned speculators that China’s housing prices would inevitably enter a cycle of slow growth. ** This round of real-estate regulations have entered into an in-depth stage and the (market) would be dampened to some extent for the short term, the China Real Estate Business said in an article titled “It’s time for house speculators to give up illusions”. ** Money inflows from institutional investors had been limited in the past weeks, while foreign inflows via the Stock Connect slowed, CITIC Securities noted in a report. ** Investors via the Stock Connect linking mainalnd and Hong Kong sold a net 3.8 billion yuan ($593.38 million) worth of A-shares on Tuesday, according to Refinitiv data. ** The Hang Seng index dropped 0.8% to 28,622.75 points, while the Hong Kong China Enterprises Index lost 0.9% to 10,657.23. ** Shares of Chinese sportswear group Xtep International Holdings shot up to a record high on bond issue plan. ($1 = 6.4040 Chinese yuan) (Reporting by Luoyan Liu and Andrew Galbraith, Editing by Sherry Jacob-Phillips) Our Standards: The Thomson Reuters Trust Principles.