* SSEC -0.8 pct, CSI300 -1.1 pct, HSI -1.2 pct
* Beijing steps up control on capital outflow
* Investors little excited by new electricity transmission
SHANGHAI, Dec 2 China stocks fell on
profit-taking on Friday morning, nearly erasing this week's gain
and spoiling chances of advancing for an eighth consecutive
week, with liquidity concerns offsetting any boost from a solid
November manufacturing sector survey.
Hong Kong shares, which are more exposed to global markets,
ended the morning session lower, and were on track to fall the
most in two weeks, as oil price levelled off.
The blue-chip CSI300 index fell 1.1 percent, to
3,526.69 points at the end of the morning session, bringing its
weekly gain to less than 0.2 percent, while the Shanghai
Composite Index lost 0.8 percent, to 3,247.67 points.
The Hang Seng index dropped 1.2 percent, to 22,612.60
points, and lost nearly 0.5 percent for the week. The Hong Kong
China Enterprises Index lost 1.0 percent, to 9,796.02
A spike in short-term borrowing costs and treasury yields
raised liquidity concerns, curbing investors' risl appetite
going into the weekend.
Most sectors in China lost ground, with financial
, real estate and tech shares
among the worst performers.
An index tracking the infrastructure sector
dipped, as investors appearing unimpressed by Beijing's approval
of 105 pilot projects to lead its reform of electricity
transmission and distribution pricing.
Energy shares rose on higher restructuring hopes.
Shares in China Petroleum & Chemical Corp jumped
nearly 5 percent, after China Petrochemical News reported that
Chairman Wang Yupu had urged faster internal reforms in the
In Hong Kong, almost all main sectors lost, with tech stock
and services shares leading the decline.
The long-awaited Shenzhen-Hong Kong Stock Connect will
launch on Monday. Analysts expect the scheme will benefit Hong
Kong more as small-cap stocks are much cheaper there than in
($1 = 6.8836 Chinese yuan renminbi)
(Reporting by Jackie Cai and John Ruwitch; Editing by Simon