HK shares fall 2.1 pct on oil, economic worries

* Hang Seng Bank extends slide on WaMu exposure

* Energy stocks beaten on oil price drop

* China Resource Logic jumps on expansion plans

HONG KONG, Oct 3 (Reuters) - Hong Kong shares fell 2.1 percent on Friday as lower prices hammered energy stocks while local lender Hang Seng Bank (0011.HK) extended its slide as investors fretted over its exposure to failed U.S. lender Washington Mutual WMPUQ.PK.

But China Resources Logic (1193.HK) dodged the downdraft to soar 25 percent after it told Reuters it would buy 22 urban gas projects from its parent and seek to invest in an industry rival after it acquires China Resources Gas this month. [ID:nHKG361645]

The benchmark Hang Seng Index .HSI ended the morning session down 386.31 points at 17,824.80.

Mainboard turnover fell to HK$28 billion ($3.59 billion) from HK$35.9 billion at mid-day on Thursday.

Investors stayed on the sidelines ahead of the U.S. House of Representatives vote on the $700 billion financial bailout package, which lawmakers had rejected on Monday.

Worries persisted that the rescue package would not do enough to prevent a recession in the world's largest economy after data showed that jobless claims rose to a seven-year high and factory orders declined to their lowest rate in two years.

"With the latest global financial market turmoil adding a negative shock to an already fragile environment, we believe there is no doubt that the Hong Kong economy will face increasing difficulties in coming quarters," said Qian Wang, analyst with JP Morgan.

"With the G3 economies expected to contract modestly and China's economy likely moderating to near-trend growth in coming quarters, we expect the Hong Kong economy to slide into a mild recession."

Energy and metal stocks tumbled on Friday after commodity prices fell overnight on fears the global economic slowdown will hurt demand.

Asia's largest oil & gas producer Petrochina (0857.HK) dropped 4.2 percent while offshore oil specialist CNOOC (0883.HK) gave up 4.6 percent.

China Shenhua Energy (1088.HK), the world's most valuable coal miner, lost 4.5 percent.

The China Enterprises Index .HSCE of top locally listed mainland Chinese firms fell 2.5 percent to 9,096.74.

Shares in PICC Property & Casualty (2328.HK) jumped 4 percent after Credit Suisse upgraded China's top non-life insurer to outperform from neutral, saying pricing pressure should ease as capacity had been severely impacted by weak investment markets.