* SSEC -0.7 pct, CSI300 -0.7 pct, HSI -1.4 pct
* Sentiment hurt by overnight slump in global markets
* China also wary over tightening liquidity, PBOC risk
SHANGHAI, March 22 Hong Kong and China stocks
fell on Wednesday, with investors' risk appetite soured by sharp
losses on Wall Street on concerns that U.S. President Donald
Trump will struggle to deliver tax cuts and other reflationary
In Hong Kong, where stocks are more exposed to global
volatility than their mainland peers, the benchmark Hang Seng
index looked set to snap a four-session winning streak.
It fell 1.4 percent by the end of the morning session, to
The Hong Kong China Enterprises Index lost 2.1
percent to 10,416.16, partly due to weaker southbound inflows
from Shanghai through a trading link.
"Investors are taking a review of the global economic
recovery as Trump fails to put forward specific figures on his
tax cut policies and infrastructure plans," said Linus Yip,
strategist at First Shanghai Securities Ltd.
Profit taking was also to blame after the recent run-up, Yip
said, adding that some investors were worried stocks were too
pricey and that such high valuations can't be justified.
On Tuesday, both the S&P 500 and the Dow Jones
Industrial Average booked their biggest one-day slide
since before Trump's election victory in November on concerns
over his capability to deliver promised corporate tax cuts.
Sectors in Hong Kong lost ground across the board, with
industrial stocks leading the declines.
Global bearish sentiment also dragged on mainland China
markets, according to Zhang Qi, an analyst at Haitong
The blue-chip CSI300 index fell 0.7 percent to
3,442.58, while the Shanghai Composite Index also lost
0.7 percent to 3,237.95.
Banks were among the worst performers, with an
index tracking the sector falling 1.2 percent by the lunch
Zhang said investors were also concerned about tightening
liquidity in the banking system as the end of the quarter nears.
Short-term interest rates in China surged on Tuesday as cash
conditions tightened on worries the central bank's quarterly
risk assessment at the end of this month would restrict lending
in the interbank market.
Bucking the broad trend were stocks related to the "One
Belt, One Road" infrastructure initiative, which firmed 0.6
percent after China launched its official website on Tuesday.
The healthcare sector gained 0.5 percent, after
receiving a boost from heavyweight Yunnan Baiyao Group Co Ltd
(Reporting by Jackie Cai and John Ruwitch; Editing by Kim