China stocks fell on Monday, as concerns over surging COVID-19 cases disrupting economic activity outweighed support from government bodies.

** The blue-chip CSI 300 Index was down 1% by the end of the morning session, while the Shanghai Composite Index declined 1.3%.

** Hong Kong's Hang Seng Index dropped 0.5%, and the Hang Seng China Enterprises Index lost 0.3%.

** China is in the first of an expected three waves of COVID cases this winter, according to the country's chief epidemiologist, Wu Zunyou. Further waves will come as people follow the tradition of returning en masse to their home areas for the Lunar New Year holiday next month, he said.

** Healthcare stocks slumped 3.2% to lead the decline, shares in energy and semiconductors lost 1.9% each.

** CICC analysts said recent correction in the market is due to COVID outbreaks and profit-taking following rebounds, while predicting more volatility in the coming months as economic activity will continue to be disrupted by the COVID.

** China will focus on stabilising its economy in 2023 and step up policy adjustments to ensure key targets are hit, said a statement following the annual Central Economic Work Conference(CEWC).

** China should better coordinate epidemic prevention and control, and economic and social development, it added.

** "Other than reiterating support for private businesses, the CEWC statement sounded more positive about the role of internet platforms, a clear sign that the regulatory storms that damaged market sentiment in recent years are giving way to normalised regulation," said Standard Chartered analysts in a note.

** Tech giants listed in Hong Kong slipped 0.3%, while index heavyweights Alibaba and Meituan added nearly 2% each.

** The CSI Education Industry Index rose 4.4%, while New Oriental Education jumped 5.6%. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)