* SSEC 0.0 pct, CSI300 -0.2 pct, HSI -0.8 pct
* Property market will be a focus of risk control in 2017
* New home price monthly growth on mainland halves in
SHANGHAI, Dec 19 China stocks dipped on Monday
morning as risk appetite was curbed by persistent signs of
liquidity stress in the banking system, as well as Beijing's vow
to contain asset bubbles next year by keeping monetary policy
"prudent and neutral."
The bearish sentiment spilled over to Hong Kong, where main
indexes were already under pressure from a sluggish insurance
sector amid media reports of fresh curbs on insurance purchases
The blue-chip CSI300 index fell 0.2 percent, to
3,339.42 points at the end of the morning session, while the
Shanghai Composite Index was unchanged at 3,122.57
Markets were cautious after China's top leaders vowed over
the weekend to stem asset bubbles in 2017 and place greater
importance on the prevention of financial risk, while keeping
the economy on a path of stable and healthy growth.
The policy signal from the economic planning meeting
"disillusioned investors who had envisioned a further loosening
in monetary policies. Now it's clear that policies tend to
tighten," Changjiang Securities said in its latest strategy
Meanwhile, China's bond market weakness persisted on Monday,
deepening concerns over liquidity stress toward the year-end.
The price of China's 10-year treasury futures for March delivery
tumbled more than 1 percent soon after open, although it
trimmed some of the losses by midday.
China's property stocks dropped 1.4 percent by
midday, after the sector was identified by China's top leaders
as a focus of risk control in 2017.
Sentiment was further dampened by index heavyweight China
Vanke Co Ltd, whose share tumbled more than 4.7
percent after the biggest residential property company in China
terminated a key deal with Shenzhen Metro Group.
In Hong Kong, the Hang Seng index dropped 0.8
percent, to 21,851.88 points, while the Hong Kong China
Enterprises Index lost 1.0 percent, to 9,374.09 points.
Shares of AIA Group Ltd retreated nearly 1.5
percent on news that Chinese would face more curbs when buying
insurance in Hong Kong, according to Bloomberg report citing
"The indexes in Hong Kong were mainly hurt by several
heavyweights," said Steven Leung, director at UOB Kay Hian in
Hong Kong, adding that China's tighter property policies and
fresh curbs on insurance purchases pressured the market.
A gauge of Chinese property companies listed in Hong Kong
lost nearly 1.9 percent.
Providing some relief to the depressed backdrop, worries
about rising diplomatic tensions between the world's two biggest
economic powers eased after China agreed to return a U.S. drone
it had seized.
(Reporting by Jackie Cai and John Ruwitch; Editing by Shri