* SSEC -1.1 pct, CSI300 -1.0 pct, HSI -0.5 pct
* China's Q1 GDP growth seen at 6.8 pct - think tank
* China facing heightened financial risks from property
downturn - Moody's
* Li & Fung Ltd tumbles as profit misses expectation
SHANGHAI, March 30 China stocks were headed for
a fourth day of losses on Thursday morning, with risk appetite
soured by worries over property market prospects, sharp declines
in newly-listed stocks, and liquidity stress as the month-end
The bearish sentiment spilled over to Hong Kong, where the
market edged lower without the support of southbound inflows.
The CSI300 index fell 1.0 percent, to 3,430.67
points at the end of the morning session, while the Shanghai
Composite Index lost 1.1 percent, to 3,205.00 points.
The tech-heavy start-up board slid 1.6 percent
to a five-week low.
The National Academy of Economic Strategy, a government
think tank, urged the authorities to guard against risks in the
property and financial sectors by properly managing monetary and
land supply "floodgates", the official Xinhua agency reported -
adding to concerns about more restrictions on property
Further hurting sentiment, Moody's Investors Service warned
that the financial risks facing China from a potential property
downturn had grown as record lending had made banks more
risk-prone while the government was less able to combat those
An index tracking real estate developers fell
1.3 percent at midday.
Zhang Qi, an analyst at Haitong Securities, said liquidity
worries kept investors sidelined. China's central bank skipped
open market operations for a fifth day and was set to drain 40
billion yuan ($5.80 billion) on Thursday.
Zhang noted that recent sharp losses in newly-listed stocks,
usually overpriced because of speculation, also weighed on the
"It would be hard to maintain the high valuation if their
growth in revenue fail to match the prices," he said.
Jiangsu Jiejie Microelectronics Co Ltd and Gansu
Longshenrongfa Pharmaceutical Industry Co Ltd, both
listed for less than a year, fell 10 percent by the lunch break,
the maximum allowed.
In Hong Kong, the Hang Seng index dropped 0.5
percent, to 24,277.76 points, while the Hong Kong China
Enterprises Index lost 1.0 percent, to 10,333.66 points.
Southbound trading between mainland cities and Hong Kong
through connect schemes was suspended until April 5 for a
Shares lost ground across the board in Hong Kong.
Li & Fung Ltd plummeted more than 9 percent after
the firm reported a 47 percent slide in annual net profit,
($1 = 6.8945 Chinese yuan renminbi)
(Reporting by Jackie Cai and John Ruwitch; Editing by Eric