* SSEC -0.2 pct, CSI300 -0.4 pct, HSI +0.3 pct
* China April manufacturing growth slows faster than
* Tencent at record high
SHANGHAI, May 2 China stocks fell on Tuesday
morning, with investors kept cautious by worries over
regulatory tightening and weaker-than-expected economic
The CSI300 index fell 0.4 percent, to 3,427.21
points at the end of the morning session, while the Shanghai
Composite Index lost 0.2 percent, to 3,147.01 points.
Growth in China's manufacturing sector slowed faster than
expected in April, an official survey showed on Sunday, as
producer price inflation cooled and policymakers' efforts to
reduce financial risks in the economy weighed on demand.
A private survey echoed Sunday's official data on Tuesday,
finding China's factory sector lost momentum in April, with
growth slowing to its weakest pace in seven months as domestic
and export demand faltered.
This news could curb sentiment, as economic growth has been
a major concern for investors, said Xiao Shijun, an analyst at
The official Xinhua news agency on Monday cited Xu Zhong,
head of the People's Bank of China's (PBOC) research bureau, as
saying the country needed to deleverage at a "proper pace" to
reduce financial sector debt and avoid systemic financial risk.
Tightening financial regulations could continue to weigh on
market risk appetite in the medium to long term, Gao Ting, head
of China strategy at UBS Securities, wrote in a research note.
Sector performance was mixed.
Some blue-chips tumbled, including Hisense Electric
, after reporting first-quarter results, in
particular consumer plays, indicating investors might be
inclined to take profits in the sector after a strong rally this
Hong Kong stock followed Asian shares higher, as growing
optimism for strong tech industry earnings and receding concerns
over North Korea offset softer-than-expected factory readings in
China and the United States.
The Hang Seng index added 0.3 percent, to 24,680.47
points, the highest level in 21 months, led by index heavyweight
Tencent, which advanced 1.6 percent to a record high.
The Hong Kong China Enterprises Index gained 0.1
percent, to 10,229.22 points.