HK shares fall 1.22 pct to near 3-wk low; banks lead

HONG KONG, Dec 17 (Reuters) - Hong Kong's main stock index
fell for a third straight session on Thursday, down 1.22 percent
to a near three-week low, as a sharp fall in Chinese stocks and
fears of more fund outflows prompted investors to sell banking
plays.

The benchmark Hang Seng Index .HSI ended down 264.11 points
at 21,347.63.

Chinese banks retreated in their third straight day of losses
on persistent worries that Beijing might cool a lending binge.

China's banking regulator urged banks on Wednesday to issue
more syndicated loans, to help reduce the risk of bad loans after
a burst of new lending this year. [ID:nTOE5BF091]

China Construction Bank (0939.HK) fell 1.68 percent to
HK$6.45 and Bank of China (3988.HK) slipped 1.46 percent to
HK$4.04.

The China Enterprises Index .HSCE of top locally listed
mainland Chinese stocks closed down 1.5 percent at 12,501.20.
(Reporting by Sui-Lee Wee; Editing by Chris Lewis)