China shares drop on renewed worries about tight money
* Shanghai composite index down 1.1 pct, CSI300 down 1.2 pct
* PBOC suspends fund injection, sparking worries
* China cabinet says 2013 GDP could be at 7.6 pct
* Light trading on day after Christmas
By Chen Yixin and Gabriel Wildau
SHANGHAI, Dec 26 (Reuters) - Chinese shares dropped on Thursday in light trading, as the central bank declined to inject funds into the money market, sparking renewed worries that liquidity conditions could tighten again in coming weeks.
Analysts said that while money-market rates had come down from the near six-month highs of earlier this week, the market remained concerned that conditions could tighten around Lunar New Year, which begins on Jan. 31.
Authorities injected funds on Tuesday, and investors had hoped more would be put in on Thursday.
"Money conditions are still the key reason for market moves for now," said Deng Eryong, an analyst at Changjiang Securities.
The Shanghai Composite Index was down 1.1 percent at midday. The CSI300 index of the top Shanghai and Shenzhen listings dropped 1.2 percent.
On Wednesday, trading volume in Shanghai was the lowest since July, and it was on pace to be only slightly higher on Thursday.
Hong Kong markets, closed for a Christmas break, will reopen on Friday.
Financials were the biggest drag, with an index of Shanghai- listed financial tickers falling 1.2 percent. Minsheng Bank slumped 1.2 percent and Ping An Bank . CITIC Securities Co lost 2.0 percent.
A cabinet report cited by the official Xinhua news agency said that China's economic growth is likely to come in at 7.6 percent this year, just above the government's target of 7.5 percent and slightly below last year's 7.7 percent.
Analysts said that slightly slower domestic economic growth this year would have little impact on stock market. The most important thing for the market is smooth growth, Deng said.
($1 = 6.2547 Chinese yuan) (Editing by Richard Borsuk)
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