* SSEC 0.37%, CSI300 0.23%, HSI -0.74% * July China factory output, retail sales data miss expectations * Hong Kong’s Hang Seng falls as tech firms resume slide SHANGHAI, Aug 16 (Reuters) - China shares edged higher on Monday, led by financial firms, after disappointing economic data lifted expectations of more policy support to bolster a wobbly recovery, while weakness in tech shares weighed on Hong Kong’s benchmark index. ** China’s factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations, adding to signs the economic recovery is losing momentum. ** At the same time, China’s central bank injected 600 billion yuan ($92.63 billion) in medium-term loans into the financial system on Monday, more than expected, in what many market participants interpreted as an effort to prop up the economy. ** At the midday break, the Shanghai Composite index was up 0.37% at 3,529.14 points. ** China’s blue-chip CSI300 index was up 0.23%, with its financial sector sub-index higher by 0.71%, the consumer staples sector up 0.29%, the real estate index up 1.44% and the healthcare sub-index up 0.16%. ** But in Hong Kong, Chinese H-shares listed fell 1.06% to 9,277.96, while the Hang Seng Index was down 0.74% at 26,195.41. ** Tencent Holdings dropped 3.19% as investor sentiment around Chinese tech firms took another hit following a state media commentary on the weekend calling for stronger vetting of online games and “zero tolerance” toward those that distort history. ** Other tech shares also dropped, with Meituan falling 5.23% and Alibaba Group Holding slipping 1.85%. The Hang Seng Tech index fell 2.39%. ** The smaller Shenzhen index was down 0.14%, the start-up board ChiNext Composite index was weaker by 0.73% and Shanghai’s tech-focused STAR50 index was up 0.39%. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.51% while Japan’s Nikkei index was down 1.79%. ** The yuan was quoted at 6.4772 per U.S. dollar, 0.01% weaker than the previous close of 6.4767. ($1 = 6.4771 Chinese yuan) (Reporting by Andrew Galbraith; editing by Krishna Chandra Eluri) Our Standards: The Thomson Reuters Trust Principles.