* SSEC 0.4 pct, CSI300 0.4 pct, HSI 0.7 pct * Analysts see limit on further macro loosening * Yuan strengthens to 6.8455 per dollar SHANGHAI, Jan 7 (Reuters) - China stocks climbed on Monday after the country's central bank slashed the amount of cash that banks must hold in reserve in an attempt to avoid a sharp economic slowdown, but worries over growth and trade continue to dent investor sentiment. ** At midday, the Shanghai Composite index .SSEC was 0.44 percent higher at 2,525.83 points. ** China's blue-chip CSI300 index .CSI300 was up 0.36 percent, with its financial sector sub-index .CSI300FS lower by 0.27 percent and the healthcare sub-index down 0.03 percent. ** The People's Bank of China said on Friday it was cutting the amount of cash that banks have to hold as reserves for the fifth time in a year, freeing up $116 billion for new lending as it tries to reduce the risk of a sharp economic slowdown. urn:newsml:reuters.com:*:nL3N1VF3KG ** "The effect of the latest universal RRR cut will depend on whether the easing money will be eventually channelled to the real economy, which will depend on the banks' risk appetite," OCBC said in a research note. ** "We expect there to be limited room for the market to continue to fall from its current position. But the economic and credit cycles remain in a downturn, corporate profitability and performance growth are weakening, and there is a limit to further loosening of macro policy," analysts at Guodu Securities said in a note. ** Chinese H-shares listed in Hong Kong .HSCE rose 0.75 percent at 10,105.03, while the Hang Seng Index .HSI was up 0.67 percent at 25,798.31. ** The smaller Shenzhen index .SZSC was up 1.28 percent and the start-up board ChiNext Composite index .CHINEXTP was higher by 1.53 percent. ** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 1.33 percent, while Japan's Nikkei index .N225 was up 2.67 percent. ** The yuan CNY=CFXS was quoted at 6.8455 per U.S. dollar, 0.37 percent firmer than the previous close of 6.871. ** The largest percentage gainers in the main Shanghai Composite index were Shanghai Zhixin Electric Co Ltd 600517.SS , which rose 10.14 percent, followed by Lanzhou LS Heavy Equipment Co Ltd 603169.SS , which gained 10.12 percent and Baosheng Science and Technology Innovation Co Ltd 600973.SS , which gained 10.1 percent. ** The largest percentage losses in the Shanghai index were New China Life Insurance Co Ltd 601336.SS , which lost 8.24 percent, followed by Wuhan Hanshang Group Co Ltd 600774.SS , which lost 4.87 percent and Changzhou Tenglong Auto Parts Co Ltd 603158.SS , which slipped 3.79 percent. ** So far this year, the Shanghai stock index is up 0.84 percent, while China's H-share index is down 0.9 percent. ** The top gainers among H-shares were Air China Ltd 0753.HK , which rose as much as 4.33 percent, followed by Dongfeng Motor Group Co Ltd 0489.HK , which gained as much as 3.11 percent and Haitong Securities Co Ltd 6837.HK , which climbed up to 2.7 percent. ** The three biggest H-shares percentage decliners were New China Life Insurance Co Ltd 1336.HK , which dropped as much as 7.57 percent, Shenzhou International Group Holdings Ltd 2313.HK , which lost up to 2.6 percent and China Gas Holdings Ltd 0384.HK , which slipped as much as 1.1 percent. ** About 11.17 billion shares have traded so far on the Shanghai exchange, roughly 83.3 percent of the market's 30-day moving average of 13.40 billion shares a day. The volume traded was 16.89 billion, as of last full trading day. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares .HSCIE rose up to 0.9 percent, while the IT sector .HSCIIT gained 1.7 percent. The top gainer on the Hang Seng was WH Group Ltd 0288.HK , up 2.39 percent, while the biggest loser was Shenzhou International Group Holdings Ltd 2313.HK , which was down 2.57 percent. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ China stock market graphics suite http://reut.rs/1NfkoGl ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Andrew Galbraith, Editing by Sherry Jacob-Phillips) ((Andrew.Galbraith@tr.com; +86 21 6104 1779; Reuters Messaging: andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))