SHANGHAI, March 7 (Reuters) - China stocks fell on Thursday, as better-than-expected trade data dented expectations of strong stimulus, even though the top securities regulator vowed to protect small investors and address deep-rooted issues in the market.

** China's blue-chip CSI300 Index slipped 0.3% and the Shanghai Composite Index lost 0.2% by the midday break.

** Hong Kong's share benchmark Hang Seng was down 0.5%, and the Hang Seng China Enterprises Index edged down 0.1%.

** The broad Asian shares market rallied in relief while the dollar nursed losses after the world's most powerful central banker reassured investors that U.S. rates would fall this year.

** China's export and import growth in the January-February period beat forecasts. Analysts worry it might soften stimulus strength as China set a 5% economic growth target for 2024 this week, but didn't provide plans for strong stimulus.

** Also hurting sentiment, China's Foreign Minister Wang Yi said that the U.S. continues to hold the wrong perception of China and has yet to fulfill its promises despite some progress since presidents of both countries met last November.

** Healthcare, artificial intelligence and photovoltaic sectors fell more than 2% each to lead the declines.

** WuXi AppTec tumbled as the U.S. Senate's homeland security committee voted to approve a bill that could restrict business with Chinese biotech companies.

** Hong Kong-listed tech giants lost 0.9%, but JD.com jumped 6% after the Chinese online retailer reported fourth-quarter revenue above estimates.

** China's securities regulator vowed to protect small investors by cracking down on market misbehavior and improving the quality of listed companies.

** "We think these are positive messages," said Morgan Stanley in a note. "We continue to believe that breaking out of the ongoing deflation pressure through a stronger fiscal package would be more important to stabilizing and rebooting Chinese listed companies' earnings growth outlook." (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)