China shares edge lower on supply concerns, Hong Kong weaker
* HSI -0.2 pct, H-shares -0.5 pct, CSI300 -0.2 pct
* Favorable macro-policy expectations yet to lift sentiment
* ChiNext snaps six-day winning streak down 0.8 pct
* CSPC Pharma slides after major shareholder sells shares (Updates to midday)
By Grace Li
HONG KONG, May 27 (Reuters) - China shares eased slightly after the morning session on Tuesday, as positive signals from Beijing on policy fine-tuning to support economic growth failed to lift market sentiment.
Hong Kong tracked losses in Chinese markets, with H-shares down more than half a percent on profit-taking.
"We can see a striking contrast between strong expectations, stemming from signs of possible easing on money and property policies, and how calm the markets have behaved," said Guo Yanling, senior analyst at Shanghai Securities.
"Investors still lack confidence due to concerns about new IPOs which will end up diluting capital," she added.
By midday, the Hang Seng Index was down 0.2 percent at 22,917.53 points. The China Enterprises Index of the top Chinese listings in Hong Kong shed 0.5 percent.
The CSI300 of the leading Shanghai and Shenzhen A-share listings fell 0.2 percent, while the Shanghai Composite Index was also down 0.2 percent at 2,037.04 points.
Premier Li Keqiang had said last week pre-emptive fine-tuning of policy to help resolve financing strains for the real economy was needed as China still faces relatively big downward pressures.
Meanwhile, central bank governor Zhou Xiaochuan said the People's Bank of China should continue prudent monetary policy. It should create a good monetary and financial environment to deepen reforms and support the local economy's development, Zhou was quoted as saying on the central bank's website on Tuesday.
The NASDAQ-style ChiNext Composite Index of mainly high growth, high tech counters, snapped its six-day winning streak to stand 0.8 percent lower on Tuesday morning. Recent gains, however, have helped the index rebound 6.5 percent from the year's lowest close on May 16.
CSPC Pharmaceutical Group Ltd lost 5.8 percent after the company said its major shareholder Joyful Horizon agreed to sell about 12 percent of shares to third parties. The stock was also the most actively traded in the Hong Kong market during the morning session.
Top percentage loser among H-shares was CITIC Securities , down 2.9 percent after it hit a more than one-month closing high on Monday.
Midday bourse volume in Hong Kong remained weak and below its 20-day average for the third day.
"The market needs some encouragement", said Linus Yip, strategist at First Shanghai Securities in Hong Kong. "The buying interest is not too strong and the selling pressure is not too strong also." (Editing by Jacqueline Wong)