* SSEC -0.2 pct, CSI300 0.1 pct, HSI 0.9 pct
* Hong Kong main index hit 22-month high; Tencent rise again
* Tighter regulation curb risk appetite in China
SHANGHAI, May 22 China's main stock indexes were
little changed on Monday morning as strength in financials and
raw materials were offset by weakness in the real estate and
brokerage sector, both of which suffered from tighter government
The CSI300 index rose 0.1 percent, to 3,406.08
points by the lunch break, while the Shanghai Composite Index
lost 0.2 percent, to 3,083.11 points.
The market has been hobbled over the past few weeks by fears
of renewed economic slowdown and heavy-handed regulation aimed
at curbing broad financial risks.
Think tank State Information Centre said in an article over
the weekend that China's economy will likely expand around 6.8
percent in the second quarter of 2017, compared with 6.9 percent
in the first quarter. "Overall, China's economy will remain
stable but with a slightly slowing trend," it said.
"When growth is going well, they (the Chinese government)
start to withdraw a little bit of liquidity, start to raise
rates a little bit," said Will Ballard, head of emerging markets
and Asia Pacific equities at Aviva Investors, referring to
Beijing's stepped up campaign to clean up the financial sector.
Over the weekend, China's securities regulator meted out
punishment to brokerage Sealand Securities and mutual fund house
Sinvo Fund Management Co for their lax internal management.
Sealand Securities plunged 5 percent.
Property shares also fell sharply, after fresh
real estate restrictions were announced in the eastern Chinese
city of Wuxi, and the central city of Changsha.
But raw material shares were in demand on
Monday, up 0.6 percent, as steel futures jumped nearly 6 percent
to their highest since March.
Hong Kong stocks hit their highest level in 22 months, as
index heavyweight rose to another record high, partly helped by
continuous money inflows from mainland China.
The Hang Seng index added 0.9 percent, to 25,412.26
points, while the Hong Kong China Enterprises Index
gained 1.2 percent, to 10,385.72.
(Reporting by Samuel Shen and John Ruwitch; Editing by Shri