SHANGHAI, July 13 (Reuters) - Chinese shares ended more than 1% lower on Wednesday after two consecutive days of gains, as excitement from Beijing’s policy easing dissipates, while rising Sino-U.S. tensions weigh on sentiment. ** The blue-chip CSI300 index fell 1.2% to 5,083.08, while the Shanghai Composite Index lost 1.1% to 3,528.50. ** Mainland Chinese stocks had gained earlier this week, spurred by the central bank’s surprise cut in banks’ required reserve ratio (RRR) announced late on Friday. People’s Bank of China said on Tuesday that the move has not altered its prudent monetary policy stance. ** The 50-basis-point RRR cut and fiscal support, “are unlikely sufficient to reverse the growth downtrend, as the drag from the slowing property sector is too strong to fully offset,” wrote Ting Lu, Nomura’s Chief China Economist. ** The U.S. government on Tuesday strengthened its warnings to businesses about the growing risks of having supply chain and investment links to China’s Xinjiang region, citing forced labour and human rights abuses there. ** “I am watching for any indication that a serious correction is developing,” said Bill Witherell, chief global economist at Cumberland Advisors. “Deteriorating China-U.S. financial relations certainly could trigger one.” ** Lynda Zhou, Shanghai-based fund manager at Fidelity International, said she expected rising volatility in China’s onshore stock market, and also cautioned against the negative impact from an expected U.S. tapering. ** The CSI 300 banking index dropped 1.7% to its lowest level in six months, as government efforts to push down real lending rates, and slowing economic growth threaten lenders’ margins. ** China’s new energy sector slumped over 3% on profit-taking. Electric-car maker BYD tumbled 7.5%. ** China’s property stocks continued to decline as Beijing signalled it will maintain tightening on the sector. “The amount of pain felt in the property sector could be underestimated by markets,” Nomura’s Lu said. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich) Our Standards: The Thomson Reuters Trust Principles.