* SSEC -0.3 pct, CSI300 -0.2 pct, HSI +0.5 pct
* China's central bank skipped OMO for third session
* HK-listed mainland developers bounced sharply
SHANGHAI, March 28 China stocks weakened on
Tuesday morning on further signs of tightening liquidity
conditions after the central bank refrained from injecting
short-term funds into the banking system for the third session
in a row.
Hong Kong stocks followed Asian markets higher after Wall
Street stabilized following the U.S. President Donald Trump's
healthcare reform debacle.
China's blue-chip CSI300 index fell 0.2 percent,
to 3,471.49 points by the lunch break, while the Shanghai
Composite Index lost 0.3 percent, to 3,257.38 points.
The People's Bank of China skipped open market operations
again on Tuesday, citing "appropriate" liquidity levels in the
banking system as the reason not to inject funds.
The PBOC's decision reinforces Beijing's tighter monetary
policy bias, which has pared risk appetite and offset the impact
from recent upbeat economic data.
"In the short term, neither bulls nor bears can get the
upper hand," Min Lizheng, analyst at Eastmoney Securities wrote.
The government must balance the need to support the economy
and ward off asset price bubbles, Min said.
Most sectors fell, with transportation and
consumer among the worst performers.
In Hong Kong, the Hang Seng index added 0.5 percent,
to 24,317.93 points, while the Hong Kong China Enterprises Index
gained 0.8 percent, to 10,444.48.
Sentiment was aided by Asian stocks, which advanced after
Wall Street steadied and the dollar bounced from a
four-month-low, as anxiety over Trump's setback on healthcare
reform gave way to tentative hopes for the U.S. President's
planned stimulus policies.
Most sectors rose in Hong Kong, with an index tracking
mainland developers jumping over 2 percent after the
previous session's tumble.
(Samuel Shen and John Ruwitch; Editing by Shri Navaratnam)