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China stocks inch up as investors brace for fresh trade talks

* Shanghai shares add 0.2%, blue chips up 0.5%, both up week-on-week

* U.S.-China talks to resume next week, but no timeline to face-to-face meeting

* China's June new loans dip; regulator says lending demand met

HONG KONG, July 5 (Reuters) - China shares ended a tick higher on Friday and posted weekly gains as Beijing and Washington prepared for a fresh round of talks due next week, but the rise was capped as it remained unclear whether the two nations can strike a durable trade deal.

** The Shanghai Composite index closed 0.2% firmer at 3,011.06 points, up 1.1% week-on-week. The blue-chip CSI300 index was up 0.5% on the day, and closed 1.8% higher on the week.

** CSI300's financial sector sub-index ended down 0.1%, the consumer staples sector closed 2.7% higher, the real estate index ended 1.4% weaker and the healthcare sub-index closed up 1.7%.

** The smaller Shenzhen index ended up 0.6% and the start-up board ChiNext Composite index closed almost 1% stronger.

** Top representatives of the United States and China are organizing a resumption of talks for next week to try to resolve a year-long trade war between the world's two largest economies, Trump administration officials said.

** However, White House Economic Adviser Larry Kudlow sounded unclear about the timeline for relaunching face-to-face talks, saying that these would begin "soon".

** Rating agency Moody's affirmed China's rating at A1 with a stable outlook on Thursday, citing the country's financial and policy means to contain any rise in its economy-wide leverage and mobilise resources to support its stressed public sector entities and maintain financial stability.

** Chinese banks extended less in new yuan loans in June, according to a Reuters calculation based on official data, but regulators assured that credit needs of the broader economy were met.

** "In the short-term, the A-share market may climb with (some) volatility," Galaxy Securities' analysts wrote in a report on Friday. "(Investors) should continue to pay attention to the rolling out of policies relevant to markets and changes in companies' valuations following mid-year results."

** Asian markets were hoving near two-month highs on Friday as investors braced for U.S. employment data, a key release that could stoke or temper market expectations about aggressive policy easing by the Federal Reserve.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.1%, while Japan's Nikkei index closed up 0.2%.

** The largest percentage gainers in the main Shanghai Composite index were Hengtong Logistics Co Ltd, up 10.1%, followed by Harbin High-Tech Group Co Ltd and Fujian Raynen Technology Co Ltd, both up 10%.

** So far this year, the Shanghai stock index is up 20.7% and the CSI300 climbed 29.3%. Shanghai stocks rose 1.1% this month.

** About 15.68 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 19.44 billion shares.

** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average. (Reporting by Noah Sin, Editing by Sherry Jacob-Phillips)