0956 GMT - ASML faces a bigger threat from the U.S. Match Act--draft bipartisan legislation that could block the group's China sales--than it does from Chinese competition, Jefferies analysts write. Shares in the Dutch maker of lithography machines fell sharply Monday on investor concerns that a Shanghai-based company is selling its homegrown version of ASML's deep ultraviolet machines to Chinese chip makers. However, the analysts say "the impact from Shanghai Yuliangsheng's sales will be limited, compared to the headwind from the potential passing of the Match Act," the analysts say. Blocking ASML's access to the Chinese market could knock revenues by around 15%, the analysts say. ASML shares drop 2% Tuesday, after losing 8.5% in the last session.