* SSEC -0.3 pct, CSI300 -0.1 pct, HSI -0.3 pct
* China banking regulator tightens rules on WMPs
* China c.bank injects net 170 bln yuan, the most in nearly
SHANGHAI, May 16 China stocks capped off Tuesday
morning on a weaker footing as worries about fresh moves to
restrict shadow banking were only partially offset by a generous
injection of cash by the central bank apparently aimed at easing
The CSI300 index fell 0.1 percent, to 3,396.65
points at the end of the morning session, while the Shanghai
Composite Index lost 0.3 percent, to 3,079.74 points.
Late on Monday, China's banking regulator tightened
disclosure rules on lenders' wealth management products (WMPs)
in its latest move to curb shadow banking and risky investments.
Separately, the China Banking Regulatory Commission (CBRC)
unveiled plans to publish a flurry of regulations later this
year to control financial risks.
On the trading floor, however, concerns over tighter
regulations that have knocked the market recently were partly
offset by signs the government is moving to keep the economy
On Tuesday, China's central bank injected a net 170 billion
yuan ($24.67 billion) into money market through open market
operations - the most in nearly four months - to offset
liquidity stress caused by corporate tax payment and maturing
Analysts say the market is likely to stabilize after staying
in the red for five consecutive weeks as regulators try not to
go too hard in their quest to curb debt risks.
"The market is increasingly likely to stabilize," Li Chao,
analyst at Huatai Securities wrote.
"If the market misunderstands policy intentions and
continues to fall, there will be more soothing remarks from
Sector performance was mixed.
Banking and infrastructure stocks
fell while consumer and healthcare shares
In Hong Kong, the Hang Seng index dropped 0.3
percent, to 25,308.29 points, while the Hong Kong China
Enterprises Index lost 0.6 percent, to 10,389.25.
(Reporting by Samuel Shen and John Ruwitch; Editing by Shri