Wires

China stocks join global sell-off on oil plunge, coronavirus impact fears

* SSEC -3.0%, CSI300 -3.4%

* HK->Shanghai Connect daily quota used -16.7%, Shanghai->HK daily quota used 13.5%

* FTSE China A50 -3.0%

SHANGHAI/Hong Kong, March 9 (Reuters) - China stocks slumped on Monday, as fears over the economic impact of the global coronavirus epidemic were exacerbated by a crash in oil prices that battered financial markets around the world.

The CSI300 index skidded 3.4% to close at 3,997.13 points, while the Shanghai Composite Index slid 3.0%, to 2,943.29 points.

Sectors fell across the board, dragged down by materials and consumer firms.

For the day, foreign investors sold A-shares worth more than 12 billion yuan ($1.73 billion) via the Stock Connect linking mainland and Hong Kong amid a rush to buy less risky assets.

Still, losses were still limited compared to other markets, helped by the number of new virus cases in China falling and expectations of further Beijing policy support to underpin the world's second-largest economy.

"Fears over the global coronavirus contagion persisted, while the oil plunge was also a reflection of worries over global economic momentum," said Zhou Longgang, an analyst with Huachuang Securities.

"China has more fiscal policy room to hedge the impact from the virus outbreak, which is why the A-share market is relatively stronger, as a wave of rate cuts by central banks could have limited impact on global capital markets and economy," Zhou added.

Analysts also argued a firm yuan and the historically high interest rate spreads between China and the United States could help bolster the attractiveness of Chinese assets.

The continued drop in new cases fuelled optimism that the virus spread has been brought under control in the country.

Mainland China, outside Hubei province, reported no new locally transmitted cases for the second straight day, as a senior Communist Party official warned against reducing vigilance against the disease.

Meanwhile, dismal economic data reinforced expectations that Beijing would take more proactive measures to shore up the economy.

China's exports contracted sharply in the first two months of the year, and imports declined, as the health crisis triggered by the coronavirus outbreak caused massive disruptions to business operations, global supply chains and economic activity.

"(The) A-share market is still very locally driven. Local investors feel they have experienced the worst and the government is going to implement easier fiscal, monetary policy and help the domestic economy to recover," said Khiem Do, head of Greater China Investments at Barings.

Chinese policymakers have implemented a raft of measures to support an economy jolted by the coronavirus, expected to have a devastating impact on first-quarter growth.

Meanwhile Chinese treasury bonds surged as investors sought safe-haven investments, pushing futures sharply higher.

The most-traded contract for Chinese 10-year treasury bonds, for June delivery, jumped as much as 0.79% higher to 102.255, the highest level for 10-year treasury futures since at least 2015, according to Refinitiv data.

The rush into bonds depressed yields, with traders quoting the yield on 10-year Chinese government bonds at 2.5125%, the lowest since June 2002. ($1 = 6.9457 Chinese yuan renminbi) (Reporting by Luoyan Liu, Noah Sin and Andrew Galbraith; Editing by Kenneth Maxwell)