* CSI300 -0.7 pct; SSEC -0.5 pct; His -1.6 pct
* Terror in Paris heralds further global uncertainties-analyst
* airline shares slump in the wake of the Paris attacks
SHANGHAI, Nov 16 (Reuters) - China and Hong Kong stocks dropped on Monday morning, tracking regional markets, as Friday’s deadly attacks in Paris dampened risk appetite among global investors.
Sentiment on the mainland was also hurt by Chinese stock regulator’s announcement over the weekend that it would raise margin finance requirements to reduce systemic risks.
China’s blue-chip CSI300 index opened 1.7 percent lower, but pared some losses to end the morning down 0.7 percent, at 3,720.73 points. The Shanghai Composite Index lost 0.5 percent, to 3,562.54 points.
The Hang Seng index dropped 1.6 percent, to 22,031.16 points while the Hong Kong China Enterprises Index lost 1.9 percent, to 9,985.54.
“Terror in Paris heralds further global uncertainties,” wrote Hong Hao, managing director and chief China strategist at BOCOM International.
“While CSRC tries to deleverage, global risk-off events can pressure existing leveraged portfolios,” he said, referring to the decision by the China Securities Regulatory Commission (CSRC) to tighten margin requirements.
His view was echoed by Shanghai-based hedge fund manager Liao Bing, who cautioned against more risks stemming from mining and oil-producing regions.
Most sectors in China fell, but IT and telecommunications stocks rose. The tech-heavy start-up board ChiNext board also bucked the trend, rising nearly 1 percent.
Transportation stocks were among the hardest hit on Monday, with airline operators including China Eastern and Air China slumping amid concerns that the Paris attacks would deter people from travelling overseas.
In Hong Kong, shares fell across the board.
Reporting by Samuel Shen and Pete Sweeney; Editing by Simon Cameron-Moore