* SSEC -0.7 pct, CSI300 -0.8 pct, HSI -0.4 pct
* Stocks weaken ahead of possible U.S. interest rate hike
* Liquidity concerns a drag on market sentiment
SHANGHAI, Dec 13 China's stocks tumbled on
Tuesday morning, with investors trimming their portfolios on
liquidity concerns after the market posted its worst day in six
months in the last session.
Hong Kong's share market also extended Monday's weakness in
expectation of a possible U.S. interest rate hike this week.
China's blue-chip CSI300 index hit a five-week low
and fell 0.8 percent, to 3,383.28 points at the end of the
morning session, while the Shanghai Composite Index lost
0.7 percent, to 3,132.14 points.
The benchmark Hang Seng index dropped 0.4 percent, to
22,351.43 points, while the Hong Kong China Enterprises Index
lost 0.4 percent, to 9,663.41 points.
Investors were keeping a close watch on the U.S. Federal
Reserve's policy meeting starting later in the day, which is
widely expected to bring a U.S. interest rate hike for the first
time this year, making emerging markets less attractive.
The property sector in the city dropped for the
second day, falling more than 1 percent. Hong Kong's currency
peg to the U.S. dollar ensures that interest rates follow that
of the United States, meaning higher borrowing costs for real
Both the mainland and Hong Kong markets got some solace from
the energy sector, after oil prices soared overnight.
Indexes tracking the energy sector in the city advanced
1.2 percent, and 0.45 percent on the mainland.
"Bad news piled up for the time being, as regulators are
reining in their control on insurers," said Li Zheming, analyst
at Datong Securities in Dalian, adding that a recent
acceleration in approvals for initial public offerings also put
pressure on the second board, leaving the markets more
vulnerable to the performance of blue chips.
Li noted that stock market sentiment was tempered by
concerns over liquidity at the year-end, rising treasury yields
in the United States and on the mainland, and higher U.S.
China benchmark 10-year treasury yields advanced
to a 13-month high by midday.
(Reporting by Jackie Cai and John Ruwitch; Editing by