China stocks fell on Monday as domestic COVID-19 outbreaks dashed some investors' hopes of an early easing in strict pandemic curbs, but the surge in infections lifted some healthcare shares.

** The blue-chip CSI 300 Index was down 1.3% by the end of the morning session, and the Shanghai Composite Index slipped 0.8%.

** Hong Kong's Hang Seng Index lost 2.1%, while the Hang Seng China Enterprises Index declined 2.2%.

** China is fighting numerous COVID-19 flare-ups, from Zhengzhou in the central Henan province to Chongqing in the southwest and on Sunday reported 26,824 new local cases, nearing April's peaks.

** The official People's Daily on Monday published another article reiterating the need to catch infections early but avoid taking a "one-size-fits-all" approach, its eighth such piece in the nine days since China adjusted policy.

** "Recent high-level rhetoric shows few signs of an imminent departure from zero-COVID," said Oxford Economics analysts in a note.

** Shares in Consumer staples, tourism , and real estate developers led the declines, down between 2% and 3%.

** However, some stocks related to coronavirus testing and treatment rose, with TY Pharmaceutical Group and Andon Health Co jumping 10% by their daily limits.

** Separately, China kept its benchmark lending rates unchanged for the third straight month.

** In the Hong Kong market, tech giants and mainland property developers were down roughly 3% each.

** "Our base-case forecast scenario is for a gradual reopening, a slow recovery in the property sector and a US recession in 2023, which will affect the return in Chinese stocks," said Hao Hong, chief economist at GROW Investment Group.

** Hong expects the Shanghai Composite to trade between around 3,000 and 3,500 for the next twelve months, and the Hang Seng Index could jump to as high as 23,000, while the 15,000 level in late October should be a low point of the current cycle. (Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)