* CSI300 -0.7 pct, SSEC -0.3 pct; HSI -0.5 pct, HSCE -0.3
* Risk appetite still soured
* Asset managers trim equity exposure
* President Xi's speech signals ongoing tightening
SHANGHAI, April 28 China's main stock indexes
fell on Friday and looked set for their third straight weekly
loss on fears that regulators will step up their latest
crackdown on riskier types of financing and speculation.
While China's regulatory enforcement sprees have tended to
wax and wane in the past, investors fear there may be no let up
in the latest campaign after President Xi Jinping made a rare
speech this week on financial stability.
Xi called on Tuesday for increased efforts to ward off
systemic risks to help maintain financial security, the official
Xinhua news agency said.
"We think it sends an important signal to support the
ongoing tightening of financial regulation and enforcement,"
Citi wrote in a recent note.
The blue-chip CSI300 index fell 0.7 percent to
3,423.68 points by the midday break, while the Shanghai
Composite Index lost 0.3 percent to 3,141.55.
The CSI300 looked set for a loss of 1.2 percent on the week
and the SSEC around 1 percent.
Sustained efforts by authorities to encourage or force more
deleveraging in the system could tighten liquidity and sour
investors' sentiment further, said Zhang Gang, an analyst with
China Central Securities, while adding he did not see further
China watchers have generally expected another modest
increase in short-term interest rates by the central bank around
June, but see no aggressive tightening moves ahead of a major
leadership transition later in the year.
Still, the People's Bank of China (PBOC) and other
regulators have ramped up the pressure on a number of fronts as
they look to contain financial risks after years of debt-fueled
The PBOC has drained 815 billion yuan ($118.18 billion) on a
net basis from money markets via open market operations so far
this year, but has still stepped in and injected funds from time
to time when markets appeared to be growing too stressed.
"The decline in the second half of April was driven more by
soured sentiment, as speculative money suffered setbacks. It
could take time for the market to recover," a South China-based
fund manager pointed out.
Main sectors fell across the board on Friday, with losses
led by the consumer sector, which posted a 3 percent
loss as investors took profits after a strong rally.
Liquor maker Jiangsu Yanghe Brewery dived as
much as 10 percent to a 10-week low, poised for its worst day
since August, 2015.
In Hong Kong, stocks slipped as investors took profits.
The Hang Seng index fell 0.5 percent to 24,588.27,
though still looked set to end the week 2.3 percent higher.
The China Enterprises Index lost 0.3 percent, to
(Reporting by Luoyan Liu and John Ruwitch; Editing by Kim