* SSEC 0.0 pct, CSI300 -0.3 pct, HSI 0.4 pct
* CBRC issues guidance for banks to strengthen management of
* Regulatory worries linger
SHANGHAI, May 9 China's main stock indexes
steadied on Tuesday morning, as lingering concerns over tighter
financial regulations kept investors cautious.
The CSI300 index fell 0.3 percent, to 3,349.82
points at the end of the morning session, while the Shanghai
Composite Index was unchanged at 3,077.67 points.
The official Xinhua News Agency published editorials for the
sixth day in a row that highlighted Beijing's concerted campaign
to guard against financial risks.
Tougher financial regulations have been a major concern for
investors, many of whom fear the measures could go too far and
hurt growth in the world's second largest economy.
In a bid to defuse asset bubbles and systemic risks, China
has tightened its grip on the heated property market and other
financial fronts ahead of a key party congress later this year.
Major state banks raised interest rates on home mortgages
for first-time home buyers in Guangzhou, as part of China's
efforts to control property prices, Shanghai Securities News
"Those regulatory measures to curb financial risks are
exceeding expectations, but chances are small for a major
downturn in the benchmark indexes ahead of a key party congress
later this year," said Yang Weixiao, an analyst with Founder
China's central bank on Tuesday skipped open market
operations for a third straight trading day, further stoking
concerns over the bank's shift to a tightening policy bias after
years of ultra-loose settings.
The China Banking Regulatory Commission (CBRC) recently
issued guidance for banks to strengthen their management of
collateral to better service the real economy.
Investors are expected to remain cautious in the short term
due to a lack of positive catalysts in the market, Yang added.
Most sectors lost ground by the lunch break, led by consumer
and healthcare stocks.
Hong Kong shares extended gains on Tuesday, as investors
searched for the next catalyst following France's presidential
The Hang Seng index added 0.4 percent to 24,664.03
The Hong Kong China Enterprises Index also gained
0.4 percent, to 10,025.00 points.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Randy