* SSEC 0.2%, CSI300 0.3%, HSI 0.3% * HK->Shanghai Connect daily quota used 2.5%, Shanghai->HK daily quota used 0.3% * FTSE China A50 +0.1% SHANGHAI, June 17 (Reuters) - China stocks rose on Thursday after three straight sessions of losses as downbeat factory output data eased fears of policy tightening in the world’s second-largest economy. ** The CSI300 index rose 0.3%, to 5,096.38 points at the end of the morning session, while the Shanghai Composite Index gained 0.2%, to 3,524.31 points. ** The gains came after a three-day losing streak, with the CSI300 falling the most in two months on Wednesday. ** Growth in China’s factory output slowed for a third straight month in May, likely weighed down by disruptions caused by COVID-19 outbreaks in the country’s southern export powerhouse of Guangdong. ** The U.S. Federal Reserve on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying. ** Concerns over domestic valuations remained a focal point for investors. ** “The root cause for the recent correction was high valuations, as many Chinese institutional investors switched out of expensive stocks to prepare for a year-end ranking,” said Dong Baozhen, chairman of Beijing-based private securities fund Lingtong Shengtai Investment Management. ** “There is co-existence of extremely high valuations and extremely low valuations in the A-share market, which needs to be corrected,” he said. ** New energy vehicle companies, leading healthcare firms and liquor stocks, long seen as bets with frothy valuations, witnessed sharp corrections in the past few days. ** The CSI new energy vehicles index jumped 2.6% on Thursday after tumbling 6.4% on Wednesday, while the CSI300 healthcare index firmed 1% after losing ground for three consecutive sessions. ** In Hong Kong, the Hang Seng index added 0.3% to 28,516.97 points, while the Hong Kong China Enterprises Index gained 0.2% to 10,585.37. (Reporting by Luoyan Liu and Andrew Galbraith) Our Standards: The Thomson Reuters Trust Principles.