HK shares extend losses to fall over 3 pct,HKEx dives

HONG KONG, July 7 (Reuters) - Hong Kong shares extended losses to fall more than 3 percent on Tuesday, led by a 6.2 percent drop in bourse operator Hong Kong Exchanges & Clearing Ltd (HKEx) (0388.HK: Quote, Profile, Research) on dwindling daily turnover.

HKEx fell to its lowest level since mid-August 2007, before a scheme to allow mainland Chinese individuals to invest directly in Hong Kong stocks was proposed.

At 0350 GMT, the benchmark Hang Seng Index .HSI was down 2.9 percent at 21,285.30 after dipping to 21,248.89 earlier. All 43 of the index's stocks were in the red.

The China Enterprises Index .HSCE of top locally listed mainland firms dropped 3.1 percent. (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)